Shares of contract electronics manufacturer Jabil (JBL -0.52%) have been in fine form over the last few months thanks to its solid quarterly results, and the good news is that the company looks set to enter the new year with momentum on its side following its latest report.Jabil released its fiscal 2025 first-quarter results (for the three months ended Nov. 30) on Dec. 18. The stock jumped as the company's numbers were well ahead of Wall Street's expectations. Even better, Jabil raised its full-year guidanc ...

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I downgraded my rating to hold for Jabil (NYSE: JBL ) when I wrote about it last October (2023) as I believed the share price had already reflected any near-term upside. Based on my current outlook and analysis on JBL, II consider an investment ideal if it performs its core business in a sector projected to experience structural (organic) growth in excess of GDP growth over the next 5-10 years; profits from sustainable competitive advantages that translate into attractive unit economics; In the hands of com ...

Jabil TodayJBLJabil$140.44 -3.25 (-2.26%) 52-Week Range$95.85▼$156.94Dividend Yield0.23%P/E Ratio12.74Price Target$149.50Add to WatchlistJabil NYSE: JBL continues to face headwinds, but its fiscal Q1 2025 report proves that the bottom is in for this business, and the outlook is bright. The report includes a top-line contraction but outperformance on the top and bottom lines compounded by improving guidance to an above-consensus level. The takeaway is that the contraction is slowing, and the business will r ...

Jabil exceeded Wall Street's targets in the first quarter despite dealing with two major hurricanes hitting its manufacturing facilities.This Wednesday was eventful for investors in Jabil (JBL 7.26%). Following a strong earnings report, the electronics design and manufacturing veteran's shares opened the morning session 12% higher. The stock cooled down a bit during the day, stopping at a 7.3% gain by the closing bell.Jabil's first quarter, by the numbersJabil's first-quarter revenues fell 17% year over yea ...

Financial Data and Key Metrics - Q1 revenue was $7 billion, up 1% year-on-year, excluding the $1.45 billion associated with the Mobility Divestiture [10] - Core operating income for Q1 was $347 million, with core operating margins at 5%, despite a 10-20 basis points impact from hurricanes [11] - GAAP operating income was $197 million, and GAAP diluted EPS was $0.88, while core diluted EPS was $2 [12] - Inventory at the end of Q1 was flat sequentially at 76 days, with net inventory days at 56, a two-day increase quarter-over-quarter [15] - Cash flow from operations was strong at $312 million, and adjusted free cash flow was $226 million [16][17] - Debt to core EBITDA levels were approximately 1.4x, with cash balances of $2.1 billion [17] - The company repurchased 1.8 million shares for $232 million in Q1, with $768 million remaining on the $1 billion share repurchase authorization [18] Segment Performance - **Regulated Industry Segment**: Revenue was $3 billion, down 7% year-on-year due to weakness in Renewable Energy and EV markets, but core operating margins increased by 10 basis points to 4.7% [12] - **Intelligent Infrastructure Segment**: Revenue was $2.5 billion, up 5% year-on-year, driven by strong demand in AI-related cloud, data center infrastructure, and capital equipment markets, with core operating margins improving by 10 basis points to 4.8% [13] - **Connected Living & Digital Commerce Segment**: Revenue was $1.5 billion, down 46% year-on-year due to the Mobility Divestiture, but excluding this, revenue growth was 12%, with core operating margins at 5.8% [14] Market Performance - The company expects continued weakness in the Renewable Energy and EV markets, particularly in the Regulated Industry segment [20] - The Intelligent Infrastructure segment is expected to grow, driven by AI-related demand in cloud, data center infrastructure, and capital equipment markets [20] - The Connected Living & Digital Commerce segment is expected to see a 20% year-on-year decline in revenue due to the Mobility Divestiture, but Digital Commerce and Warehouse Automation markets are showing strong growth [21] Strategic Direction and Industry Competition - The company is focusing on expanding its capabilities in AI, cloud, and data center infrastructure, with significant investments in liquid cooling systems and silicon photonics [28][36] - The company is well-positioned to navigate geopolitical complexities, with a large-scale global manufacturing footprint and a significant US presence [38][42] - The acquisition of Mikros Technologies enhances the company's capabilities in thermal management solutions, which are critical for AI servers and other high-power applications [28] Management Commentary on Operating Environment and Future Outlook - Management highlighted the resilience of the company in a dynamic environment, with strong execution leading to solid Q1 results [19] - The company expects stronger earnings and margins in the second half of FY'25, driven by recovery in higher-margin businesses like semi-capital equipment and cost optimization initiatives [45][46] - Full-year revenue is expected to be $27.3 billion, with core operating margins of 5.4% and core EPS of $8.75 [47] Other Important Information - The company opened a large-scale manufacturing site in Croatia, which will support automotive and healthcare customers, particularly in the GLP-1 drug delivery space [27] - The company is well-prepared for potential tariff implications, with most of its business in China being local-for-local or local-for-regional, and a strong US manufacturing footprint [40][42] Q&A Session Summary Question: Segment Margins and Recovery Expectations - Management expects margins to be above 5% for all segments, with the Intelligent Infrastructure segment showing the most growth potential [51] - The Connected Living segment is driven by consumer demand, with Digital Commerce expected to be a high-margin growth driver [51] Question: AI-Related Revenue Expectations - AI-related revenue guidance was increased to $6.5 billion, with $400 million driven by data cloud infrastructure and $100 million by semi-capital equipment [52] Question: Capital Allocation and M&A - The company plans to allocate 80% of free cash flow to share buybacks, with the remaining 20% for M&A, focusing on capabilities in healthcare and Intelligent Infrastructure [55][113] - The Mikros acquisition was focused on engineering capabilities rather than direct revenue, with potential for significant future growth in the datacenter ecosystem [56] Question: Hyperscale Customer Relationships - The company is deepening its relationship with its largest hyperscale customer, winning new business and expanding into silicon photonics [60][61] Question: Inventory Management - Inventory is expected to remain within the 55-60 days range, with lower levels expected in the second half of the year [64] Question: US Manufacturing Footprint - The company has expanded its US manufacturing footprint, with the ability to quickly ramp up production and adapt to customer needs [69][70] Question: Impact of Tariffs - Tariffs are expected to be a pass-through cost, with the company well-positioned to handle any shifts in manufacturing from Mexico to the US [76][78] Question: EV Market and Tax Credit Impact - The company is cautious about the EV market, with potential impacts from the repeal of EV tax credits, but expects to navigate the transition between EV and hybrid platforms [93][104] Question: Cloud and AI Growth Drivers - The $1.5 billion increase in AI-related revenue is driven by cloud, data center infrastructure, and semi-capital equipment, with significant growth expected in these areas [105] Question: Margin Impact from Cloud and Data Center Growth - The cloud and data center infrastructure business is not dilutive to margins, with semi-capital equipment margins above enterprise levels [110][111]

Jabil, Inc. (JBL) reported healthy first-quarter fiscal 2025 results, with both the bottom and top lines surpassing the Zacks Consensus Estimate. However, the company reported a top-line contraction year over year, owing to weakness in some verticals.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Healthy traction in the data center infrastructure, cloud and digital commerce end markets is a tailwind.Net IncomeNet income on a GAAP basis in the quarter was $100 million or 88 cents pe ...

Key TakeawaysJabil exceeded profit and sales estimates in the first quarter since announcing a restructuring.The company credits the results on increased end-markets demand for its cloud, data center infrastructure, and digital commerce products. Jabil raised its full-year earnings and revenue guidance. Jabil (JBL) shares jumped about 9% Wednesday after the manufacturer of circuit boards posted better-than-expected results and boosted its guidance after announcing a restructuring plan earlier this year. Th ...

Jabil (JBL) came out with quarterly earnings of $2 per share, beating the Zacks Consensus Estimate of $1.87 per share. This compares to earnings of $2.60 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 6.95%. A quarter ago, it was expected that this electronics manufacturer would post earnings of $2.23 per share when it actually produced earnings of $2.30, delivering a surprise of 3.14%.Over the last four quarters, the company ...

Exhibit 99.1 Jabil Posts Strong First Quarter Results Raises Fiscal 2025 Outlook ST. PETERSBURG, Fla. – December 18, 2024 – Today, Jabil Inc. (NYSE: JBL), reported preliminary, unaudited financial results for its first quarter of fiscal year 2025. First Quarter of Fiscal Year 2025 Highlights: • Net revenue: $7.0 billion • U.S. GAAP operating income: $197 million • U.S. GAAP diluted earnings per share: $0.88 • Core operating income (Non-GAAP): $347 million • Core diluted earnings per share (Non-GAAP): $2.00 ...