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Jabil Shares Jump After Apple Supplier Beats Q4 Earnings Forecast

Jabil, which makes casings for Apple's iPhones and iPads, sees quarter quarter revenues in the region of $6.7 billion to $7.3 billion, just shy of last year's $7.5 billion total.

Jabil Inc.  (JBL) - Get Jabil Inc. Report shares traded higher Thursday after the Apple  (AAPL) - Get Apple Inc. Report supplier posted stronger-than-expected fourth quarter earnings and a robust near-term outlook.  

Jabil, which makes casings for Apple's iPhones and iPads, said earnings for the three months ending in August were pegged at 98 cents per share, up 11.4% from the same period last year and firmly ahead of the Street consensus forecast of 67 cents per share. Group revenues, Jabil said, rose 11% to $7.3 billion, again topping analysts' estimates of a $6.3 billion tally.

Jabil also said it sees current quarter revenues in the range of $6.7 billion to $7.3 billion, and diluted earnings in between 79 cents at $1.02 per share.

“As we exit FY20 and look ahead, I am excited with the momentum underway in our business,” said CFO Mike Dastoor. “Several of our key businesses remain especially strong including Mobility, Healthcare and Cloud."

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"At the same time, we’re permanently transitioning certain components we procure in our EMS segment from the current purchase-and-resale model to a consignment service model,” he added. 

Jabil shares were marked 3% higher in pre-market trading Thursday following the earnings release to indicate an opening bell price of $33.35 each, a move that would extend the stock's six-month gain to around 53%.

Jabi's Diversified Manufacturing Services unit, which includes its Apple contract, saw revenues grow 17% from last year for the quarter, and 8% over the whole of the fiscal year.

Electronics Manufacturing Services, which accounts for nearly two-thirds of the group's top line, saw revenues grow 8% on the quarter and 8% for the fiscal year.