Jabil‘s (NYSE: JBL) stock recently rose after the electronics manufacturing company’s fourth-quarter numbers beat Wall Street’s expectations.
Its revenue rose 11% year-over-year to $7.3 billion, beating estimates by over $1 billion. Its core (non-GAAP) earnings rose 10% to $151.4 million, or $0.98 per share, clearing expectations by $0.31.
For the first quarter, Jabil expects its revenue to decline by 3% to 11% year-over-year, compared to expectations for a 3% drop. But on the bottom line, it expects its core EPS to rise 10%-29% — while analysts expect a 3% decline.
That rosy profit outlook was surprising and indicates that Jabil — which is best known for producing casings for Apple‘s (NASDAQ: AAPL) devices — deserves a closer look.
Understanding Jabil’s business
Jabil splits its business into