Earning & Revenues of iPhone parts supplier Jabil Surpasses Expectations

The maker of casings for the iPhones of Apple Inc, Jabil Inc, reported quarterly profit and revenue ahead of the estimates of analysts, driven by strong growth in the diversified manufacturing services business of the company.

The shares of Jabil increased by 2.5 percent to $29.20 during after-hours trading on Thursday.

Revenue from the diversified manufacturing services business of Jabil, which includes the components that are supplied to Apple, increased by 38 percent in the second quarter ended February 28. The revenue from electronics manufacturing services improved by 7 percent.

St. Petersburg, Florida-based Jabil secures approximately a quarter of its total revenue from Apple. Its other largest customers include GoPro Inc, the action-camera maker, and Cisco, network gear maker.

The shares of Jabil dropped in the wake of reports that Apple was selling fewer number of iPhones than expected during the crucial holiday shopping season. The stock has fallen by almost 10 percent since the release of the latest models of iPhones last September.

Jabil anticipates that the current-quarter revenue will amount to $4.75 billion (£3.5 billion) to $5.05 billion and adjusted the earnings of 35 to 55 cents per share. On average, according to Thomson Reuters, analysts were expecting a revenue of $4.80 billion and a profit of 44 cents per share.

Net income that is attributable to Jabil increased to $37.3 million during the second quarter, from $20.7 million, a year earlier. Excluding one-time items, the company earned 66 cents per share, surpassing the average estimate of analysts of 62 cents.

Revenue increased by 19.2 percent to $5.30 billion, ahead of the expectations of analysts of $4.90 billion.