Investors snapped up Jabil (New York Stock Exchange: JBL) shares on Thursday after the U.S.-based manufacturing company reported fourth-quarter earnings above analysts’ estimates.
Shares rose more than 14%, even as revenue of $8.5 billion for the reported quarter fell short of Street expectations. The increase added almost $2 billion dollars to the company’s market value of $13.77 billion, as of last closing.
Florida-based Jabil forecast adjusted earnings per share (EPS) for the current quarter between $2.40 per share and $2.80 per share, while revenue is expected to be between $8.4 billion and $9 billion.
The company posted fourth-quarter adjusted EPS of $2.45, beating expectations by $0.13.
A recent analysis by Seeking Alpha said the company has seen strong growth over the past decade and deserves a higher multiple.
Wall Street analysts and Searching Alpha’s Quant Rating rate the stock a “Buy,” while Searching Alpha analysts rate it a “Hold.” The stock is up almost 80% so far this year.
In early August, Jabil and BYD Electronic agreed to sell Jabil’s mobility business to the Chinese automaker’s electronics unit for cash in a transaction valued at $2.2 billion.
