Jabil Inc. (JBL) swung to a net loss for the quarter ended May 31, 2017. The company has made a net loss of $25.28 million, or $ 0.14 a share in the quarter, against a net profit of $5.21 million, or $0.03 a share in the last year period. On the other hand, core adjusted net income for the quarter stood at $57.11 million, or $0.31 a share compared with $31.96 million or $0.17 a share, a year ago.
Revenue during the quarter grew 4.15 percent to $4,489.56 million from $4,310.75 million in the previous year period. Gross margin for the quarter contracted 18 basis points over the previous year period to 7.27 percent. Total expenses were 99.03 percent of quarterly revenues, up from 98.62 percent for the same period last year. That has resulted in a contraction of 42 basis points in operating margin to 0.97 percent.
Operating income for the quarter was $43.38 million, compared with $59.60 million in the previous year period.
However, the core adjusted operating income for the quarter stood at $113.80 million compared to $87.21 million in the prior year period. At the same time, adjusted operating margin improved 51 basis points in the quarter to 2.53 percent from 2.02 percent in the last year period.
"I'm pleased with our third quarter results as both business segments performed quite well," said chief executive officer Mark Mondello. "In Diversified Manufacturing Services, the team delivered exceptional execution and cost controls against product road maps exhibiting massive scale and complexity, while we continued to see strong double-digit growth in healthcare and packaging. At the same time, our Electronics Manufacturing Services team continues to do an excellent job building broad revenue diversification, while developing end-market domain expertise, resulting in solid margin expansion," he added.
For the fourth-quarter 2017 , Jabil Inc. forecasts revenue to be in the range of $4,700 million to $5,100 million. The company forecasts operating income to be in the range of $95 million to $165 million and forecasts core adjusted operating income to be in the range of $165 million to $215 million. It expects diluted earnings per share to be in the range of $0.13 to $0.48. On an adjusted basis, the company expects core diluted earnings per share to be in the range of $0.50 to $0.74.
Operating cash flow improves
Jabil Inc. has generated cash of $533.02 million from operating activities during the nine month period, up 9.18 percent or $44.81 million, when compared with the last year period. The company has spent $477.28 million cash to meet investing activities during the nine month period as against cash outgo of $890.38 million in the last year period. It has incurred net capital expenditure of $439.30 million on net basis during the nine month period, down 32.39 percent or $210.49 million from year ago period.
The company has spent $222.93 million cash to carry out financing activities during the nine month period as against cash inflow of $375.74 million in the last year period.
Cash and cash equivalents stood at stood at $743.93 million as at May 31, 2017.
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