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Jabil's Fiscal 2017 Second Quarter Results

Thu Mar 16 23:00:00 EDT 2017

Jabil held an earnings call on March 15, covering the second quarter of its fiscal year 2017. The company reported net revenue of $4.45 billion for the quarter – with 60 percent generated from Jabil's Electronics Manufacturing Services (EMS) business and 40 percent from Jabil's Diversified Manufacturing Services (DMS) business.  

“The performance of our team during the second quarter was exceptional with nearly all of our businesses delivering at or above plan in terms of both revenue and income,” said CEO Mark Mondello. “I believe our results reflect the effectiveness of our strategy to increase the quality and diversification of our cash flows and earnings,” he added. 

Current Business Themes 

  • Each of Jabil's businesses are becoming more diversified as the company increases its customer count with market-leading brands. 

  • The strength of the EMS business is derived from execution, intense cost management and experienced teams who align near-perfect solutions with the exact needs of the customers they serve.  

  • Mobility serves as a main driver for the DMS business, however the healthcare and packaging  businesses are in line to reach a 20 percent CAGR between fiscal year 2016 to 2019.  

  • The consumer lifestyles group is serving brands that are set to change the world through augmented reality and high-tech connected devices, giving Jabil a true differentiation point. 

  • Healthcare and Packaging are extremely well positioned to prosper in the coming years, as our service offerings solidly align with the needs of the market. 

Looking Ahead 

"We believe in what we're doing. We believe what we're doing is working," said Mondello, adding "There's clear evidence that our diversified portfolio strategy has taken hold." 

Looking ahead to the second half of the fiscal year, "Jabil's focus remains on our commitment to return capital to shareholders, our multi-year financial objectives and the goal of becoming the world's most advanced manufacturing solutions company," said Mondello.  

Working towards the main goal, "we'll always respect the environment, aim to make a positive difference in the world, and constantly focus on keeping our people safe," concluded Mondello.  

In its Fiscal Year 2017 Third Quarter Guidance, the company is estimating a net revenue of $4.25 billion to $4.55 billion.