Jabil (JBL) ended the recent trading session at $171.97, demonstrating a -0.59% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 0.01%. Meanwhile, the Dow experienced a drop of 0.22%, and the technology-dominated Nasdaq saw an increase of 0.32%.Heading into today, shares of the electronics manufacturer had gained 15.1% over the past month, outpacing the Computer and Technology sector's gain of 7.95% and the S&P 500's gain of 5.2% in that time.The u ...

Company Performance - Jabil (JBL) closed at $167.51, reflecting a +0.04% change from the previous trading day's close, outperforming the S&P 500's daily loss of 0.39% [1] - Over the past month, Jabil's shares gained 29.05%, surpassing the Computer and Technology sector's gain of 19.26% and the S&P 500's gain of 13.07% [1] Earnings Expectations - The upcoming earnings report for Jabil is expected to show an EPS of $2.28, a 20.63% increase compared to the same quarter last year, with revenue anticipated at $6.98 billion, a 3.18% increase year-over-year [2] - Full-year Zacks Consensus Estimates predict earnings of $8.93 per share and revenue of $27.82 billion, indicating year-over-year changes of +5.18% for earnings and -3.68% for revenue [3] Analyst Sentiment - Recent changes to analyst estimates for Jabil are important, as positive revisions indicate optimism about the company's business and profitability [3][4] - Jabil currently holds a Zacks Rank of 3 (Hold), with the Zacks Consensus EPS estimate remaining steady over the past month [5] Valuation Metrics - Jabil is trading at a Forward P/E ratio of 18.75, which is a discount compared to the industry average Forward P/E of 18.98 [6] - The company has a PEG ratio of 1.5, while the average PEG ratio for Electronics - Manufacturing Services stocks is 1.27 [7] Industry Context - The Electronics - Manufacturing Services industry is part of the Computer and Technology sector, currently holding a Zacks Industry Rank of 174, placing it in the bottom 30% of all industries [8]

Company Performance - Jabil's stock closed at $166.86, showing a slight decline of -0.09% from the previous trading session, while the S&P 500 gained 0.1% [1] - Over the past month, Jabil's stock has increased by 23.25%, outperforming the Computer and Technology sector's gain of 14.29% and the S&P 500's gain of 9.86% [1] Earnings Projections - The upcoming earnings disclosure is projected to show earnings per share (EPS) of $2.28, reflecting a 20.63% increase from the same quarter last year [2] - Revenue is anticipated to be $6.98 billion, indicating a 3.18% increase from the same quarter last year [2] - For the full year, earnings are expected to be $8.93 per share and revenue of $27.82 billion, marking changes of +5.18% and -3.68% respectively from last year [3] Analyst Estimates and Rankings - Recent changes to analyst estimates for Jabil indicate a favorable outlook on the company's business health and profitability [4] - The Zacks Rank system, which evaluates estimate changes, currently ranks Jabil at 3 (Hold), with a recent downward shift of 0.55% in the EPS estimate [6] Valuation Metrics - Jabil's Forward P/E ratio is 18.7, which is a discount compared to the industry's average Forward P/E of 18.99 [7] - The company has a PEG ratio of 1.49, compared to the Electronics - Manufacturing Services industry's average PEG ratio of 1.29 [8] Industry Context - The Electronics - Manufacturing Services industry is part of the Computer and Technology sector and holds a Zacks Industry Rank of 44, placing it in the top 18% of over 250 industries [9]

Summary of Jabil (JBL) FY Conference Call - May 13, 2025 Company Overview - **Company**: Jabil (JBL) - **Industry**: Electronics Manufacturing Services (EMS) Key Points and Arguments Macro Economic Concerns - There is a sense of relief among customers regarding recession fears, with the administration's efforts seen as effective in preventing a significant downturn [3][5][6] - Jabil's diversified portfolio across various end markets, including healthcare and digital commerce, positions the company well to manage through economic fluctuations [4][5] Supply Chain and Tariff Management - Jabil has regionalized its supply chain, producing in-country for local consumption, which mitigates risks associated with tariff volatility [7][8] - The company is not currently seeing significant shifts in business due to tariffs, as customers are cautious about the costs and risks of relocating operations [8] Capacity and Geographic Flexibility - Approximately 35% to 40% of Jabil's capacity is located in the Americas, with current utilization around 75-80%, indicating room for growth [16][18] - The company has recently opened a facility in St. Petersburg, Florida, and has the capability to expand in the U.S. and Mexico as needed [16][18] Margin Improvement Strategies - Jabil aims to increase its margin from 5.4% to 6% or 6.5% in the near future, driven by portfolio diversification, vertical integration, and operational efficiencies [22][23][24] - The company is focusing on higher-margin businesses and has made tuck-in acquisitions to enhance its service offerings [24][25] Growth in Cloud and Data Center Infrastructure - Jabil has increased its revenue guidance for the second half of the fiscal year by $1 billion, driven by strong demand from hyperscale customers and capital equipment business [28] - The company is confident in continued spending from cloud customers, viewing it as an "arms race" among hyperscalers [28][29] Automotive Sector Challenges - The automotive segment faces headwinds from tariffs and reduced demand for electric vehicles (EVs), but Jabil is diversifying its customer base and product offerings to mitigate risks [44][45] - The company has added new OEM customers in China, which is expected to provide growth opportunities in the EV space [46][48] Healthcare Market Opportunities - Jabil is significantly larger than its nearest competitor in the healthcare market and is focused on expanding its share of wallet through organic growth and acquisitions [56][57] - The company recently acquired Pharmaceutical International Incorporated, enhancing its capabilities in pharmaceutical delivery systems [58] Semiconductor Capital Equipment - Jabil's semiconductor capital equipment business is performing well, with strong growth driven by key customers like NVIDIA [62] - The company anticipates a cyclical recovery in the semiconductor industry within the next twelve months [63] Networking and Communications - The networking segment is experiencing slower growth due to exiting low-margin businesses, but there are positive trends in Ethernet and liquid cooling technologies [65][66] Digital Commerce Growth - Jabil is seeing growth in digital commerce, particularly in automation and robotics for retail environments, with expectations for continued expansion in this area [67][68] Future Outlook - Jabil's path to achieving higher margins is not solely dependent on revenue growth but also on optimizing product mix and operational efficiencies [69][70] - The company is well-positioned for future growth across various sectors, including healthcare, cloud infrastructure, and automotive, despite current economic challenges [49][50][56]

Company Performance - Jabil (JBL) stock closed at $152.72, reflecting a +1.62% increase compared to the previous day, outperforming the S&P 500's gain of 0.44% [1] - Over the past month, Jabil's stock has risen by 24.88%, surpassing the Computer and Technology sector's increase of 15.87% and the S&P 500's increase of 10.62% [1] Upcoming Earnings - Jabil is expected to report earnings of $2.28 per share, indicating a year-over-year growth of 20.63%, with projected revenue of $6.98 billion, a 3.18% increase from the same quarter last year [2] - For the full year, analysts anticipate earnings of $8.93 per share and revenue of $27.82 billion, representing changes of +5.18% and -3.68% respectively from the previous year [3] Analyst Estimates and Valuation - Recent estimate revisions for Jabil are crucial as they reflect near-term business trends, with positive revisions indicating a favorable business outlook [3] - Jabil currently holds a Zacks Rank of 3 (Hold), with a Forward P/E ratio of 16.83, which is lower than the industry average of 17.49 [5] - The company has a PEG ratio of 1.34, compared to the industry average PEG ratio of 1.18 [6] Industry Context - Jabil operates within the Electronics - Manufacturing Services industry, which is part of the Computer and Technology sector, currently holding a Zacks Industry Rank of 94, placing it in the top 39% of over 250 industries [7]

Jabil (JBL) 2025 Conference Summary Company Overview - Jabil is a US domiciled company with **$30 billion** in revenue and **50,000** employees [2][3] - The company is described as an engineering-led supply chain enabled manufacturing company, with **10,000 engineers** contributing to its operations [3][4] Key Industry Insights - Jabil operates in **30 countries**, manufacturing for top brands across various end markets including healthcare, intelligent infrastructure, semi cap, communications, and consumer products [4][8] - The company emphasizes the importance of supply chain management, especially in the context of tariffs and macroeconomic challenges [8][11] Strategic Priorities 1. **Margin and Free Cash Flow Accretion**: Focus on improving margins and generating free cash flow, with a history of share buybacks [7][8] 2. **Support for Customers Amid Tariffs**: Assisting clients in navigating tariff challenges, leveraging a long-standing presence in various countries [8][9] 3. **Investment in Capabilities**: Continuous investment in engineering, supply chain systems, and capability-based acquisitions [10][11] Competitive Advantages - Jabil's engineering-led approach differentiates it from competitors, allowing it to assist customers from concept to market [13][14] - The company employs a unique work cell model, assigning dedicated teams to individual customers, enhancing customer relationships [14][15] - Long-tenured management team with an average of **23 years** of experience among direct reports, fostering strong customer relationships [17][19] Tariff and Supply Chain Dynamics - The company notes that the **Trump administration's tariffs** have accelerated the regionalization of supply chains, with many companies hesitant to move production due to regulatory uncertainties [21][22] - **90%** of Jabil's business in Mexico is USMCA compliant, minimizing tariff impacts [23][24] Market Trends and Growth Areas - **Healthcare**: Strong demand for auto-injector pens and insulin pens, with plans to ramp up production in Europe [72][73] - **Intelligent Infrastructure**: Significant growth in data cloud infrastructure and semiconductor testing, with a **40% year-on-year** increase in guidance [32][33] - **EV and Automotive**: Despite short-term challenges, long-term growth is expected as EV penetration increases [80][82] - **Renewables**: Positioned well to benefit from supply chain consolidation and the Inflation Reduction Act, despite current low demand [84] Financial Guidance and Capital Allocation - Jabil projects **$1.2 billion** in free cash flow for the year, with **80%** allocated to share buybacks and **20%** for tuck-in acquisitions [88][89] - The company aims for a **6% operating margin**, with strategies in place to improve capacity utilization and cost optimization [41][45] Conclusion - Jabil's ability to assist companies in manufacturing and supply chain management is underappreciated, with a strong presence in North America and capabilities to support engineering and manufacturing locally [91][92]

Company Overview - Jabil Inc (NYSE: JBL) provides global manufacturing services and solutions across sectors such as "Connected Living and Digital Commerce," "Intelligent Infrastructure," and "Regulated Industries" under a B2B model [1] - The company primarily sells to large technology firms, healthcare providers, and retail brands that offer consumer products [1] Business Model - Jabil operates on a business-to-business (B2B) model, focusing on partnerships with major companies in various industries [1] - The integration of Jabil's services is crucial for the operational efficiency of its clients in the tech and healthcare sectors [1]

Revenue Performance - Net revenue for the three months ended February 28, 2025, was $6,728 million, a decrease of 0.6% compared to $6,767 million for the same period in 2024[110]. - Net revenue for the six months ended February 28, 2025, was $13,722 million, a decrease of 9.4% compared to $15,154 million for the same period in 2024[120]. - The Connected Living and Digital Commerce segment net revenue decreased 13% in the three months ended February 28, 2025, primarily due to an 18% decrease driven by the divestiture of the Mobility Business[119]. - The Intelligent Infrastructure segment net revenue increased 18% in the three months ended February 28, 2025, primarily due to a 19% increase in revenues from existing customers within the cloud and data center infrastructure business[119]. Profitability Metrics - Gross profit for the three months ended February 28, 2025, was $576 million, representing 8.6% of net revenue, down from 9.3% in the same period in 2024[123]. - Core operating income (Non-GAAP) for the three months ended February 28, 2025, was $334 million, compared to $338 million for the same period in 2024[142]. - Diluted core earnings per share (Non-GAAP) increased to $1.94 for the three months ended February 28, 2025, from $1.68 in the same period in 2024[142]. Expenses and Charges - Selling, general and administrative expenses decreased to $256 million for the three months ended February 28, 2025, from $308 million in the same period in 2024[124]. - Research and development expenses remained consistent at $7 million for the three months ended February 28, 2025, compared to $10 million in the same period in 2024[125]. - Amortization of intangibles increased to $15 million for the three months ended February 28, 2025, compared to $9 million for the same period in 2024, reflecting a change of $6 million[126]. - Restructuring, severance, and related charges decreased to $45 million for the three months ended February 28, 2025, down from $70 million in the same period in 2024, a change of $(25) million[127]. - Acquisition and divestiture related charges decreased to $8 million for the three months ended February 28, 2025, compared to $46 million in the same period in 2024, a change of $(38) million[134]. - Interest expense, net decreased to $37 million for the three months ended February 28, 2025, down from $47 million in the same period in 2024, a change of $(10) million[137]. Cash Flow and Capital Expenditures - Adjusted free cash flow for the six months ended February 28, 2025, was $487 million, a significant increase of 120% compared to $221 million for the same period in 2024[143]. - Net cash provided by operating activities for the six months ended February 28, 2025, was $646 million, a decrease from $666 million for the same period in 2024[167]. - Net cash used in investing activities was $(503) million for the six months ended February 28, 2025, compared to $1,558 million for the same period in 2024[167]. - The company anticipates net capital expenditures to be in the range of 1.5% to 2.0% of net revenue for Fiscal Year 2025[171]. Acquisitions and Divestitures - The acquisition of Pharmaceutics International, Inc. was completed for a cash consideration of $307 million, enhancing the company's service offerings in regulated industries[144]. - The acquisition of Mikros Technologies was completed for $63 million, focusing on liquid cooling solutions for thermal management[146]. - The divestiture of the Mobility Business resulted in a pre-tax gain of $944 million, with transaction costs of approximately $46 million incurred during the sale process[148]. - The company recorded assets acquired of $349 million from the acquisition of Pharmaceutics International, including $149 million in intangible assets[145]. - The company incurred transaction and disposal costs of approximately $67 million related to the sale of the Mobility Business during the fiscal year ended August 31, 2024[154]. Financial Position and Liquidity - As of February 28, 2025, the company had approximately $1.6 billion in cash and cash equivalents, with a significant portion held by foreign subsidiaries[157]. - The company had $4.0 billion in available unused borrowing capacity under its revolving credit facilities as of February 28, 2025[158]. - The global asset-backed securitization program allowed the company to sell $2.0 billion of trade accounts receivable during the six months ended February 28, 2025[164]. - The global asset-backed securitization program's maximum cash proceeds available at any one time is $700 million, with terms amended to extend the termination date to January 2028[163]. - The company sold $2.0 billion and $3.7 billion of trade accounts receivable during the three and six months ended February 28, 2025, respectively[166]. - The outstanding balance of receivables sold but not yet collected was approximately $571 million as of February 28, 2025[166]. Share Repurchase and Stock Information - The company repurchased shares of common stock totaling $972 million under the 2025 Share Repurchase Program as of April 3, 2025[173]. - The company repurchased a total of 2,515,525 shares of common stock during the three months ended February 28, 2025, at an average price of $142.55 per share[185]. - As of February 28, 2025, the approximate dollar value of shares that may yet be purchased under the announced program is $364 million[185]. - The Board of Directors authorized a share repurchase program of up to $1.0 billion in September 2024[185]. - The average price paid per share for the repurchased shares in January 2025 was $169.14, with only 991 shares purchased[185]. Tax and Regulatory Information - The effective income tax rate for the three months ended February 28, 2025, was 36.2%, compared to 12.7% for the same period in 2024, a change of 23.5%[138]. - The company did not identify any modifications to its internal control over financial reporting that materially affected its effectiveness for the fiscal quarter ended February 28, 2025[182]. - There were no material changes in primary risk exposures or management of market risks from those disclosed in the Annual Report for the fiscal year ended August 31, 2024[180]. - No defaults upon senior securities were reported during the period[186]. Other Information - The sales cycle increased to 33 days for the three months ended February 28, 2025, compared to 27 days in the previous quarter[112]. - Days in accounts receivable increased to 50 days for the three months ended February 28, 2025, compared to 35 days in the same period in 2024[112]. - Four executive officers adopted trading arrangements under Rule 10b5-1 during the three months ended February 28, 2025, with total shares to be sold amounting to 664,246[189]. - The trading arrangements include up to 630,000 shares by the Executive Chairman of the Board of Directors, set to expire on March 31, 2027[189]. - The company issued a warrant to Amazon.com NV Investment Holdings LLC to acquire up to 1,158,539 ordinary shares at an initial exercise price of $137.77 per share[175]. - The fair value of the warrant was determined using the Black-Scholes option pricing model, with an expected volatility of 34.4%[178]. - The company has not disclosed any new product or technology developments in the provided content[188]. - There are no new strategies or market expansions mentioned in the content provided[188].

Core Viewpoint - Jabil has shown a strong stock price performance with a 27% gain over the past nine months, despite a recent pullback, making it an attractive investment option due to improving growth prospects [1] Company Overview - Jabil provides design, production, and manufacturing services across various sectors, including cloud, data centers, semiconductor equipment, networking, communications, automotive, and transportation [2] - The company has benefited from significant investments in artificial intelligence (AI) infrastructure, prompting an increase in its growth forecast for fiscal year 2025 [2] Financial Performance - Jabil's fiscal 2025 second-quarter results exceeded Wall Street expectations, leading to an increase in full-year guidance [3] - The company now anticipates $27.9 billion in revenue for fiscal 2025, up from a previous forecast of $27.3 billion, and raised its earnings per share forecast to $8.95, an increase of $0.20 [4] AI Impact - AI is a major driver for Jabil's growth, with an expected $7.5 billion in revenue from AI-related businesses, representing a 40% increase from the previous year [5] - The demand for AI-related products, such as servers and networking equipment, is fueling this growth, with the AI server market projected to grow almost sixfold from 2024 to 2030 [6] Margin Improvement - Jabil's adjusted operating margin in the intelligent infrastructure segment increased by 110 basis points year-over-year, contributing to the raised bottom-line forecast [7] - The favorable growth rates in AI-related markets are expected to further enhance Jabil's margin profile and bottom-line growth [8] Valuation and Investment Potential - Jabil's stock is currently trading at 15 times forward earnings, significantly lower than the Nasdaq-100 index's forward earnings multiple of 25, indicating a solid buying opportunity [9] - If Jabil achieves a premium valuation in the future, its stock price could potentially reach $294, representing a 116% increase from its current price [10]

Core Insights - Jabil Inc. has launched new 1.6 Terabit transceivers designed to meet the increasing demands of AI, high-performance computing, cloud infrastructure, and data center interconnects [1][6] - The transceivers utilize Intel's Silicon Photonics technology, enabling high-bandwidth and power-efficient connectivity [2][3] - Jabil's advancements in photonics technology are expected to drive incremental demand and improve financial performance, potentially boosting stock prices [6] Product Development - The 1.6T transceivers can transfer data at speeds of up to 1.6 Terabits per second, with configurations available in DR8, DR8+, and 2xFR4 [1][3] - Each transceiver can achieve speeds of 200 Gigabits per lane on both electrical and optical interfaces, enhancing intra-data center connectivity [3] - The solution doubles the bandwidth of data center racks without requiring infrastructure changes, making it a cost-effective upgrade [4] Market Position and Prospects - Jabil has a strong global presence and a connected factory network, allowing it to scale production in response to market dynamics [5] - The company is well-positioned to benefit from the long-term adoption of 5G and cloud computing technologies [5] - Jabil's commitment to photonics innovation reinforces its leadership in the industry and addresses evolving market needs [6] Financial Performance - Jabil's stock has decreased by 1.3% over the past year, contrasting with the industry's growth of 16.5% [7] - The introduction of the new transceivers is anticipated to lead to higher revenues and improved financial performance [6] Competitive Landscape - Jabil currently holds a Zacks Rank of 2 (Buy), indicating positive market sentiment [8] - Competitors like InterDigital and CommScope also hold strong rankings, with InterDigital showing an earnings surprise of 158.41% in the last four quarters [8][9]