01:15 PM EDT, 09/26/2024 (MT Newswires) -- Shares of Jabil ( JBL ) were soaring intraday Thursday after the company forecast an annual increase in fiscal 2025 earnings after reporting higher-than-expected fourth-quarter results.

The manufacturing solutions provider expects adjusted earnings per share of $8.65 in the ongoing year, compared with $8.49 reported for fiscal 2024. The average analyst estimate is for normalized EPS of $8.62 in fiscal 2025, according to a Capital IQ survey. Shares of Jabil ( JBL ) climbed 11% in Thursday trade.

Management forecast revenue of $27 billion this fiscal year, implying a decline from $28.88 billion it posted for the year ended Aug. 31. Analysts on average are modeling revenue of $27.19 billion in fiscal 2025.

The lower top-line forecast reflects Jabil's ( JBL ) divested mobility business partway through fiscal 2024, as well as a portfolio shift away from the legacy networking space, which together accounted for $2.4 billion in revenue last year, Chief Financial Officer Greg Hebard said on a conference call, according to a Capital IQ transcript. Revenue is projected to grow 2.3% when adjusting for these shifts, he told analysts.

The mobility divestiture is also expected to lead to lower capital expenditures this year, Hebard said.

For the first quarter, the company forecast revenue in the $6.3 billion to $6.9 billion range, marking a decline from the $8.39 billion in revenue it posted for the fiscal 2024 first quarter. Non-GAAP EPS is slotted between $1.65 and $2.05, implying a decline from $2.60 the year before. Analysts surveyed by Capital IQ are modeling for revenue and adjusted EPS of $6.47 billion and $1.84, respectively.

Fourth-quarter revenue fell to $6.96 billion in the August quarter from $8.46 billion the year earlier but beat the analysts' expectation of $6.58 billion. Adjusted EPS dipped to $2.30 from $2.45 year over year but topped the $2.22 analyst expectation. The revenue outperformance was driven by stronger-than-expected results in connected devices, networking and storage markets, Hebard told analysts on the call.

Jabil ( JBL ) announced a $1 billion share buyback authorization on Thursday. It will transition to three operating segments compared with two previously, focusing on regulated industries, intelligent infrastructure and connected living and digital commerce.

Price: 125.11, Change: +11.68, Percent Change: +10.30