On Jabil's earnings call last night the company reported a net revenue of $5.1 billion for the first quarter of fiscal 2017. "Our financial results were stronger than management anticipated, reflecting the second best quarter in Jabil's 50-year history in terms of both revenue and core operating income," said CEO Mark Mondello. "The core operating margin for the first quarter was squarely inline with management's expectation of 4.1 percent," he added.
Jabil's strategy continues to be grounded by the diversification of its core earnings. "Our healthcare and packaging businesses are extremely well-positioned to prosper in coming years as our aptitude and approach solidly align with market trends," explained Mondello. These businesses have exhibited a true growth story, as margins have expanded while moving from early adoption investment periods to large-scale well-established business sectors. Jabil expects them to accelerate and grow more rapidly in the future.
Speaking on Jabil's capital allocation framework, Mark assured shareholders that Jabil is on track to return capital to shareholders, as previously communicated under our two-year capital allocation framework. "The capital being returned to shareholders is underpinned by our intense cost management, confidence in future cashflow and our commitment to shareholders," he added.
Moving forward into the second quarter of fiscal year 17, Mark stated that management's goal for the Jabil brand is to become the world's most advanced manufacturing solutions company, and in doing so keeping people safe, respecting the environment, conducting business with integrity, and looking to make a difference in the world. For more information on Jabil's first quarter earnings call, visit our website.