Jabil reports strong fourth quarter, closes fiscal year with bullish outlook

ST. PETERSBURG – Electronics manufacturer Jabil finished its fiscal year with a financial upswing, reporting strong gains for the fourth quarter ended Aug. 31 in both revenues and net income over the same period a year ago. Net income was $46 million, up from $38 million.

For its full fiscal year, Jabil reported revenues of $19.1 billion, up from $18.4 billion in the prior year. Annual net income, however, fell to $129 million from $254 million a year earlier.

"I'm very pleased with our team's performance throughout the fiscal year," CEO Mark Mondello stated in the earnings release. "As we described at the outset of the year, success would include solid revenue and core earnings growth coupled with strong cash flow generation. Clearly, we delivered on these strategic objectives."

Jabil's "diversified manufacturing sector" — products made for consumer lifestyles and wearable technologies, defense and aerospace, emerging growth, health care, mobility, and packaging — enjoyed a 32 percent increase in revenues in the fourth quarter. That gain translated to an overall 13 percent corporate revenue bump for the last three months of its 2017 fiscal year.

RELATED COVERAGE: St. Petersburg's Jabil seeks to strengthen its brand amid brutal global competition and Trump's job promises.

Looking ahead, Mondello said, "we expect continued revenue and core earnings per share growth in both the first quarter and fiscal 2018."

Speaking to analysts, Mondello estimated first quarter fiscal 2018 revenues near $5.5 billion. He praised Jabil's ongoing diversification into such fields as packaging as a strategy for strength and sustainability in the coming years. Jabil boasts more than 200 customers.

"We are the brand behind the world's best brands," said Mondello — a phrase he has used before.

Mondello prefaced his financial commentary by expressing sympathies to those affected by hurricanes Harvey, Irma and Maria, as well as those affected by recent earthquakes. He specifically called out Jabil employees in hard-struck Puerto Rico and praised efforts there to help others in need.

Jabil shares closed Wednesday at $28.81, well above its $23.98 starting point this year. The company's market value now exceeds $5 billion.

Earnings were reported after the close of trading on Wednesday.