What drove JBL's consistent EPS surprises in 2024?

Jabil's consistent EPS surprises in 2024 can be attributed to several key factors:

1. Strategic Divestitures: Jabil's divestiture of its mobility business for $2.2 billion has streamlined operations and improved capital allocation. This strategic move has likely enhanced profitability and reduced costs, contributing to better-than-expected EPS.
2. Focus on High-Margin Opportunities: Jabil's focus on high-margin, engineering-led opportunities has likely improved its profit margins and increased profitability. This strategic emphasis may have led to better EPS performance, as the company is able to retain more of its revenues as profits.
3. Growth in AI Infrastructure and Healthcare Innovations: Jabil's investment in AI infrastructure and healthcare innovations has contributed to its robust performance. These growth areas are likely to have higher profit margins, leading to stronger EPS results.
4. Effective Cost Management: Despite challenges in multiple end-markets, Jabil has maintained a core operating margin of 5.5%. Effective cost management has likely enabled the company to meet or exceed EPS expectations.

In summary, Jabil's consistent EPS surprises in 2024 can be attributed to strategic divestitures, a focus on high-margin opportunities, growth in high-margin areas such as AI infrastructure and healthcare, and effective cost management. These factors have collectively contributed to the company's strong financial performance and EPS outcomes.