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May 31, 2020

Jabil Q3 2020 Earnings Report

Jabil reported strong cash flows and solid revenue growth amidst a global pandemic.

Key Takeaways

Jabil reported net revenue of $6.3 billion for the third quarter of fiscal year 2020. The company's DMS segment saw a 13% year-on-year revenue growth, while the EMS segment experienced a 2% decrease. The company's U.S. GAAP operating income was $59.4 million, and core operating income (Non-GAAP) was $172.1 million.

Net revenue: $6.3 billion

Diversified Manufacturing Services (DMS) year-on-year revenue growth: 13 percent

Electronics Manufacturing Services (EMS) year-on-year revenue decrease: 2 percent

Core diluted earnings per share (Non-GAAP): $0.37

Total Revenue
$6.34B
Previous year: $6.14B
+3.3%
EPS
$0.37
Previous year: $0.57
-35.1%
Gross Profit
$456M
Previous year: $444M
+2.8%
Cash and Equivalents
$763M
Previous year: $694M
+10.0%
Free Cash Flow
$286M
Previous year: -$247M
-215.9%
Total Assets
$13.4B
Previous year: $12.6B
+6.2%

Jabil

Jabil

Forward Guidance

Jabil expects net revenue between $5.8 billion and $6.6 billion. U.S. GAAP operating income is expected to be between $79 million and $189 million. Core operating income (Non-GAAP) is expected to be between $145 million and $245 million.

Positive Outlook

  • Net revenue $5.8 billion to $6.6 billion
  • U.S. GAAP operating income $79 million to $189 million
  • U.S. GAAP diluted earnings per share $0.04 to $0.50 per diluted share
  • Core operating income (Non-GAAP) $145 million to $245 million
  • Core diluted earnings per share (Non-GAAP) $0.46 to $0.86 per diluted share

Challenges Ahead

  • Diversified Manufacturing Services revenue Decrease 1 percent year-on-year
  • Electronics Manufacturing Services revenue Decrease 8 percent year-on-year
  • Total company revenue Decrease 5 percent year-on-year