Jabil's Stock Rises Amid CEO Change and Reaffirmed Guidance
Jabil (JBL +7%) is seeing a boost today following several key announcements. The electronic circuit board manufacturer has appointed a new CEO, reaffirmed its Q3 (May) and FY24 (Aug) guidance, and removed its FY25 guidance. After projecting bearish Q3 and FY24 guidance in late March, former CEO Kenneth Wilson was placed on paid leave pending a corporate policy investigation, causing the stock to drop over 25% from all-time highs as of yesterday's close. Despite these challenges, Jabil didn't remain passive. In the month since Wilson was replaced by interim CEO Michael Dastoor, who was formerly CFO, Dastoor has been named the permanent CEO. Amid a volatile economic backdrop, Jabil has established some stability by reiterating its quarterly and full-year forecasts, including Q3 EPS of $1.65-2.05 and revenues of $6.2-6.8 billion, and FY24 EPS of $8.40. Although Jabil withdrew its FY25 EPS outlook of $10.65 due to the uncertain macroeconomic environment and abrupt CEO change, investors are optimistic. They appreciate Jabil's ability to stay on course to meet near-term guidance despite internal setbacks. The big question now is whether the new CEO can help Jabil resume its broader upward trend. Although Jabil withdrew its FY25 guidance, its ability to stay on track for its FY24 outlook shows strong management despite the unexpected CEO change. With this issue resolved, Jabil can focus on executing accelerated buybacks and ending FY24 on a positive note.
Jabil replaces CEO after investigation, pulls 2025 forecast
Jabil CEO Kenneth Wilson will leave immediately, the company said on Monday, following the completion of a previously disclosed investigation related to "corporate policies" and will be succeeded by finance chief Michael Dastoor.
