Jabil's stock tanks 12% after electronics maker sees demand soften

By Claudia Assis

Jabil's fiscal 2024 revenue to be about 7% lower than previous guidance

Shares of Jabil Inc. dropped more than 12% in the after-hours session Tuesday after the maker of electronics components and other materials lowered its quarterly and fiscal 2024 revenue outlook, saying demand for its products and services has softened.

Jabil (JBL) said it expects fiscal 2024 revenue of about $31 billion, down 7% from the midpoint of its previous guidance. Analysts polled by FactSet expect yearly revenue of $33.9 billion for the company.

For the fiscal first quarter, the company called for revenue between $8.3 billion and $8.4 billion, slightly below the lower end of an earlier range.

"During the final stretch of our first quarter, we experienced softening in demand, as a result of short-term inventory corrections across certain end-markets where we participate," Chief Executive Kenny Wilson said in a statement.

Jabil expects this inventory rebalancing to continue into the fiscal second quarter, forecasting revenue to be in a range between $7 billion and $7.6 billion.

The analysts surveyed by FactSet expect the St. Petersburg, Fla., company to report fiscal first-quarter revenue of $8.7 billion and fiscal second-quarter revenue of $8.1 billion.

Jabil said it has tried to make the company more "reliable throughout a range of economic cycles," and it expects its profitability will be "more resilient, despite softer demand."

The stock has gained 92% so far this year, compared with gains of around 19% for the S&P 500 index SPX.

-Claudia Assis

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11-28-23 1649ET

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