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Aug 31, 2020

Jabil Q4 2020 Earnings Report

Jabil delivered strong financial results, strategically positioning itself in attractive end-markets, streamlining the organization, and creating a more optimized cost structure.

Key Takeaways

Jabil Inc. reported strong fourth-quarter results, beating expectations despite global pandemic complexities. The company's strategic positioning in attractive end-markets and streamlined cost structure contributed to the positive financial outcome.

Net revenue was $7.3 billion.

Diversified Manufacturing Services (DMS) year-on-year revenue grew by 17 percent.

Electronics Manufacturing Services (EMS) year-on-year revenue grew by 8 percent.

U.S. GAAP diluted earnings per share was $0.44.

Total Revenue
$7.3B
Previous year: $6.57B
+11.1%
EPS
$0.98
Previous year: $0.88
+11.4%
Gross Profit
$491M
Previous year: $495M
-0.9%
Cash and Equivalents
$1.39B
Previous year: $1.16B
+19.8%
Free Cash Flow
$352M
Previous year: $864M
-59.2%
Total Assets
$14.4B
Previous year: $13B
+11.0%

Jabil

Jabil

Forward Guidance

Jabil anticipates net revenue between $6.7 billion and $7.3 billion, U.S. GAAP operating income between $238 million and $283 million, and U.S. GAAP diluted earnings per share between $0.79 and $1.02 for the first quarter of fiscal year 2021.

Positive Outlook

  • Net revenue $6.7 billion to $7.3 billion
  • U.S. GAAP operating income $238 million to $283 million
  • U.S. GAAP diluted earnings per share $0.79 to $1.02 per diluted share
  • Core operating income (Non-GAAP) $295 million to $335 million
  • Core diluted earnings per share (Non-GAAP) $1.15 to $1.35 per diluted share

Challenges Ahead

  • Total company revenue Decrease 7 percent year-on-year
  • Amortization of intangibles ($12.0 million)
  • Stock-based compensation expense and related charges ($31.0 million)
  • Restructuring, severance and related charges ($10.0 million to $5.0 million)
  • Acquisition and integration charges ($4.0 million)