What happened

Shares of manufacturing services provider Jabil (NYSE:JBL) surged on Wednesday after the company reported fiscal third-quarter results that beat expectations. Earnings matched analyst estimates, but revenue was higher than expected. The stock was up about 8.4% at noon EDT, after jumping much as 11.4% earlier in the day.

So what

Jabil reported third-quarter revenue of $6.14 billion, up 12.9% year over year and $130 million higher than analysts were expecting. The diversified manufacturing services segment suffered a 6% revenue decline, but this was more than offset by 26% growth in electronics manufacturing services.

A rising chart.

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Non-GAAP earnings per share came in at $0.57, up from $0.46 in the prior-year period and in line with analyst expectations. GAAP EPS was $0.28, up from $0.25.

CEO Mark Mondello sees a strong fourth quarter ahead: "In the fourth quarter, our outlook for revenue, core EPS and cash flow is solid as we see robust demand in 5G / wireless, cloud, industrial, healthcare and packaging. Over the longer-term, we remain relentless in our commitment to drive margin expansion and strong cash flows through a well-balanced, diverse stream of income."

Now what

Jabil expects to produce fourth-quarter revenue between $6.3 billion and $6.9 billion, an increase of 14% year over year at the midpoint. The diversified manufacturing services segment is forecast to grow by 4%, and the electronics manufacturing service segment is expected to grow by 22%. The company guided for non-GAAP EPS between $0.76 and $0.96.

Jabil counted on Apple for 28% of its revenue in fiscal 2018, so disappointing results from Apple later this year could derail Jabil's own results. The company's guidance ranges are wide, which may reflect a higher-than-usual level of uncertainty.

Jabil's performance and guidance were solid, which was enough to push up the stock. But longer-term risks remain.