By Dean Seal

Jabil has closed a deal to divest its mobility business to BYD Electronic for $2.2 billion earlier than expected and cut its fiscal second-quarter guidance.

The electronics supplier and manufacturer's chief financial officer, Mike Dastoor, said Friday that the transaction was closed ahead of schedule. The company had originally expected the transaction to close on Jan. 31.

"The earlier close and receipt of funds will enable us to begin initiating plans to reduce stranded costs and executing a series of accelerated buybacks throughout FY24," Dastoor said.

As a result of the earlier closing, Jabil is reducing its fiscal second-quarter revenue guidance to $6.6 billion to $7.2 billion from a prior range of $7 billion to $7.6 billion.

Earnings are now projected to be 47 cents to $1.07 a share for the quarter that started Dec. 1, compared with previous guidance for 77 cents to $1.37 a share.

Write to Dean Seal at dean.seal@wsj.com

(END) Dow Jones Newswires

December 29, 2023 06:44 ET (11:44 GMT)

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