11:14 AM EST, 12/18/2024 (MT Newswires) -- Shares of Jabil ( JBL ) advanced intraday Wednesday after the manufacturing solutions provider reported smaller-than-expected declines in fiscal first-quarter results while raising its 2025 outlook.

Revenue dipped to $6.99 billion for the three months ended Nov. 30 from $8.39 billion the year earlier but surpassed the $6.61 billion average analyst estimate on FactSet. Adjusted earnings per share slid to $2 from $2.60, compared with analysts' $1.88 estimate.

The results were stronger than the company anticipated due to "incremental strength in our cloud, data center infrastructure, and digital commerce end-markets," Chief Executive Mike Dastoor said in a statement. Shares of Jabil ( JBL ) jumped 8.8% in Wednesday trade.

Jabil's ( JBL ) regulated industries segment recorded a 7% year-over-year decline in revenue, while intelligent infrastructure sales increased 5%. Connected living and digital commerce sales tumbled 46%. The company divested its mobility business in December 2023.

The connected living unit that largely focuses on consumer oriented devices "remains under pressure," Dastoor told analysts on a conference call, according to a FactSet transcript. However, the company remains "bullish" on its digital commerce business, which has been driven by the automation of the retail and warehouse experience, he said.

For the full year, Jabil ( JBL ) now expects revenue of $27.3 billion, up from the guidance of $27 billion it provided in September. Non-GAAP EPS is now projected at $8.75, versus management's prior $8.65 expectation. Analysts surveyed by FactSet are modeling for fiscal 2025 revenue of $27.03 billion and adjusted EPS of $8.69.

Second-quarter revenue is estimated between $6.1 billion and $6.7 billion and adjusted EPS of $1.60 to $2. Analysts expect $6.27 billion and $1.79, respectively.

Regulated industries revenue is expected to decline by 8% year over year in the second quarter, due to ongoing softness in the renewable energy market, Chief Financial Officer Greg Hebard said on the call. Intelligent infrastructure sales are forecast to climb 8% while connected living and digital commerce's are projected to drop 20% amid the mobility divestiture, he said.

Price: 145.00, Change: +11.04, Percent Change: +8.24