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Jabil CEO Michael Dastoor joins board of directors

Published 03/09/2024, 13:26
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ST. PETERSBURG, Fla. - Jabil Inc. (NYSE: JBL), a leading provider of comprehensive engineering, manufacturing, and supply chain solutions, has announced the appointment of its CEO, Michael Dastoor, to the company's Board of Directors. The promotion, effective as of May 2024, aligns with Dastoor's recent elevation to the role of CEO.

Executive Chairman of the Board, Mark Mondello, expressed confidence in Dastoor's appointment, citing his deep understanding of Jabil's operations and culture as key reasons for his selection. Dastoor's tenure with Jabil began in 2000, and throughout his career, he has been instrumental in navigating the company through various market challenges and has significantly contributed to its strategic growth initiatives.

Dastoor himself commented on his board appointment, expressing his honor and eagerness to work collaboratively with the board members to further Jabil's strategic objectives and enhance shareholder value.

Jabil's history spans over half a century, and the company has established itself as a trusted partner for some of the world's leading brands. With a robust network of over 100 sites globally, Jabil leverages its extensive experience to offer scalable and tailored solutions across multiple industries. The company is also dedicated to sustainability and community engagement, aiming to minimize environmental impact and support vibrant, diverse communities worldwide.

This announcement is based on a press release statement from Jabil Inc. and reflects the company's ongoing commitment to leadership development and corporate governance.

In other recent news, manufacturing services provider, Jabil, reported strong Q3 FY '24 results, with revenues reaching approximately $6.8 billion, exceeding expectations. The growth was primarily driven by the connected devices and networking and storage end markets. However, despite the positive performance, Jabil withdrew their FY '25 guidance due to market softness, especially in EVs and semi-cap equipment, and an anticipated reshaping of their portfolio, which may reduce revenue by $800 million.

In addition to these developments, Jabil also announced plans to complete a $2.5 billion share repurchase in Q4 and reduce WASO to 110-113 by the end of FY '25. Furthermore, the company forecasts Q4 revenue between $6.3 billion and $6.9 billion, and aims for a full-year revenue of $28.5 billion.

The company's core operating income stood at $350 million, indicating a year-over-year improvement. However, the company also expects an $800 million revenue headwind in FY '25 due to portfolio reshaping and customer deselection. These are the latest developments for Jabil.

InvestingPro Insights

As Jabil Inc. (NYSE: JBL) welcomes CEO Michael Dastoor to its Board of Directors, the company's financial health and market performance remain a focal point for investors. According to recent data from InvestingPro, Jabil's market capitalization stands at a robust $12.4 billion, showcasing the company's significant presence in the industry. The company is trading at a price-to-earnings (P/E) ratio of 9.78, indicating that the stock could be undervalued when considering its earnings potential.

An InvestingPro Tip highlights that Jabil's management has been actively buying back shares, a move that often signals confidence in the company's future prospects and can lead to increased shareholder value. Another notable InvestingPro Tip is the company's high shareholder yield, which suggests that Jabil is effectively returning value to its investors through dividends and share repurchases.

It's also worth mentioning that Jabil has been a prominent player in the Electronic Equipment, Instruments & Components industry for over 50 years, as reflected in its consistent dividend payments over the last 19 years. Despite analysts anticipating a sales decline in the current year, the company's valuation implies a strong free cash flow yield, which is a positive sign for investors looking for long-term growth and stability.

For those interested in a more in-depth analysis, there are 15 additional InvestingPro Tips available at InvestingPro's Jabil page (https://www.investing.com/pro/JBL), offering a comprehensive understanding of the company's financial outlook and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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