Jabil Inc. (NYSE:JBL) Q3 2019 Earnings Conference Call Transcript

Jun 18, 2019 • 04:30 pm ET

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Jabil Inc. (NYSE:JBL) Q3 2019 Earnings Conference Call Transcript

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Presentation
Executive
Michael Dastoor

balances of $694 million.

Turning now to our capital return framework. Since the inception of our capital return framework in June of 2016, we have returned approximately $1.4 billion to shareholders including repurchases and dividends. We remain committed to balanced capital returns and look forward to outlining a capital allocation framework for FY'20 in September.

Turning now to our fourth quarter guidance. DMS segment revenue is expected to increase 4% on a year-over-year basis to $2.5 billion, while the EMS segment revenue is expected to increase 22% on a year-over-year basis to $4.1 billion. We expect total company revenue in the fourth quarter of fiscal 2019 to be in the range of $6.3 billion to $6.9 billion for an increase of approximately 14% at the midpoint of the range.

Core operating income is estimated to be in the range of $215 million to $275 million with core operating margin in the range of 3.4% to 4%. GAAP operating income is expected to be in the range of a $169 million to $235 million. Core diluted earnings per share is estimated to be in the range of $0.76 to $0.96. GAAP diluted earnings per share is expected to be in the range of $0.47 to $0.71. The tax rate on core earnings in the fourth quarter is estimated to be in the range of 27% to 29%.

As we move into the final quarter of FY'19, I am confident in our team's ability to execute and efficiently manage working capital and generate strong cash flows. Working capital improvements will come mainly to the combination of improved inventory levels as growth moderates and the component market continues to normalize.

These factors give me confidence in our ability to deliver adjusted free cash flows of $400 million for the year. In summary fiscal '19 is shaping up to be a great year and we hope to build upon this positive momentum in FY'20. Moving forward, I expect growth in both earnings and free cash flow will come through meaningful margin expansion and improved working capital efficiency.

I'll now turn the call back over to Adam to begin Q&A.

Executive
Adam Berry

Thanks, Mike. Before we begin the Q&A session, I'd like to remind our call participants that per our customer agreements, we will not address any customer or product-specific questions. We appreciate your cooperation. Operator we're now ready for Q&A.