Jabil stock falls on Q2 revenue miss, weak forecast

Jabil Inc. (JBL) shares are falling in Friday's afternoon trading session after the company reported second quarter revenue that fell short of analysts' estimates. Following the disappointment, Jabil revised its full-year forecast downward, further weighing on shares.

Yahoo Finance's Julie Hyman and Josh Lipton break down the details.

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Editor's note: This article was written by Angel Smith

Video Transcript

JULIE HYMAN: Jabil, those shares dropping as the contract manufacturer slashed its fiscal 2024 guidance table also delivered lower than expected. Revenue for its fiscal second quarter here and the CEO trying to couch this saying in a statement that fiscal year 24 was always going to be a transitional year for the company. It had sold off its mobility business and had been trying to right size its footprint. But investors don't seem like they're going to be too patient.

JOSH LIPTON: No never good when you lower your outlook for the full fiscal year and investors are reacting. The CEO did talk about, he highlighted what he called revenue headwinds Julie. Now he was trying to emphasize in this statement that these were short term. But investors clearly aren't waiting around the CEO as you noted said the fiscal year was going to be a transitional one.

It is interesting mean the street is overwhelmingly positive on this name, you don't have a single cell. But you can see the reaction in today's trade.

JULIE HYMAN: Yeah. I mean, even with the drop today the shares are still up like 50% over the past.