Jabil Shares Fall After Guidance Cut

Major U.S. equities indexes fell on the final day of the trading week as a monthly survey by the University of Michigan showed consumer expectations for inflation edged higher in February.

The uptick in predicted price increases came at the end of a week that saw hotter-than-expected consumer and wholesale inflation prints, raising doubts about the timing of potential interest rate cuts by the Federal Reserve.

The S&P 500 slid 0.7% on Friday. The Nasdaq dropped 1.0%, while the Dow closed the day 0.5% lower.

Shares of Jabil (JBL) posted the steepest losses on the S&P 500, plunging 16.5% as the contract electronics manufacturer lowered its full-year forecasts after missing quarterly profit and sales estimates. The company recently wrapped up the divestment of its mobility business and said it faces a transitional year as it works to improve its footprint and cost structure.

Although software giant Adobe (ADBE) reported higher-than-expected revenue and earnings per share (EPS) for its fiscal first quarter, its sales guidance for the current quarter fell short of estimates, and its shares plummeted 13.7%. The reduced outlook raised concerns about Adobe’s capacity to capitalize on artificial intelligence (AI) opportunities.

Underwhelming guidance also pressured shares of cosmetics retailer Ulta Beauty (ULTA), which slipped 5.2%. The company topped quarterly earnings estimates and said it would expand internationally via a joint venture in Mexico. However, the company forecast a declining profit margin in 2024 as it navigates elevated costs and increased promotions.

Real estate information and analytics firm CoStar Group (CSGP) was the top performer in the S&P 500 Friday. Shares jumped 8.3% after the company announced a sharp year-over-year increase in unique visitors to its Homes.com platform.

Shares of Steel Dynamics (STLD) gained 4.3% after the steel producer issued stronger-than-expected guidance, highlighting solid demand across its automotive, non-residential construction, energy, and industrial sectors. The company expects its flat-rolled steel business to drive growth and anticipates an uptick in earnings from its metals recycling segment.

Cummins (CMI) shares also added 4.3% after UBS upgraded the stock to Buy and lifted its price target to $321. Analysts expect the engine manufacturer to see a peak in demand in 2026, driven by momentum in the truck manufacturing cycle.