(Reuters) -Jabil Inc cut its full-year revenue and profit forecasts on Friday due to slowing demand from 5G, renewable energy and digital printing markets, sending shares of the electronic components maker down 13% in early trading.
The Florida-based company, which is an Apple supplier, expects $8.40 per share of core earnings and $28.5 billion in revenue in fiscal 2024, down from its previous forecast of more than $9 in profit on $31 billion of revenue.
Demand for electronic items has been on a decline as inflation-weary customers cut down on discretionary spending.
“Towards the end of our second quarter, we experienced a sudden slowdown within our 5G and renewable energy end markets, which we expect will continue through the second half of fiscal 2024,” Jabil CFO Michael Dastoor said during an analyst call.
The company reported revenue of $6.77 billion in the second quarter ended Feb. 29, below estimates of $6.89 billion, but its core profit of $1.68 per share came in slightly above analysts’ average expectation of $1.66, according to LSEG data.
Jabil said in an SEC filing in October that it would implement headcount reductions as part of its restructuring plan, realizing about $300 million in pre-tax restructuring and other related costs through fiscal year 2024.
The company provides design, production and management solutions to various industrial end markets including technology, automotive, transportation, healthcare, storage and packaging.
(Reporting by Aatreyee Dasgupta in Bengaluru; Editing by Shinjini Ganguli)
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