(Reuters) – Electronic components maker Jabil Inc, which is a key Apple supplier, cut its full-year forecasts on Friday due to slowing demand for 5G technology, renewable energy and digital print, sending its shares down 13% in early trading.
The Florida-based company expects $8.40 per share of core earnings and $28.5 billion in revenue in 2024, down from its previous forecast of more than $9 in profit on $31 billion of revenue.
Demand for electronic items has been on a decline as inflation-weary customers cut down on discretionary spending.
Jabil, which makes components for Airpods, provides design, production and management solutions to various industrial end markets including technology, automotive, transportation, healthcare, storage and packaging.
The company said in an SEC filing in October that it would implement “headcount reductions” as part of its restructuring plan, realizing about $300 million in pre-tax restructuring and other related costs through fiscal year 2024.
Jabil reported a second-quarter core profit of $1.68 per share, slightly above analysts’ average expectation of $1.66, according to LSEG data.
Revenue for the quarter ended Feb. 29 was $6.77 billion, below estimates of $6.89 billion.
(Reporting by Aatreyee Dasgupta in Bengaluru; Editing by Shinjini Ganguli)
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