Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Jabil, with a focus on how actual results compare to estimates, which could significantly impact the stock price [1][2]. Earnings Expectations - Jabil is expected to report quarterly earnings of $2.95 per share, reflecting a year-over-year increase of +28.3%, with revenues projected at $7.66 billion, up 10.1% from the previous year [3]. - The earnings report is scheduled for release on September 25, and better-than-expected results could lead to a stock price increase, while disappointing results may cause a decline [2]. Estimate Revisions - The consensus EPS estimate has been revised down by 0.9% over the last 30 days, indicating a reassessment by analysts [4]. - A positive Earnings ESP of +5.94% suggests that analysts have recently become more optimistic about Jabil's earnings prospects, despite the stock holding a Zacks Rank of 4, which complicates predictions of an earnings beat [12]. Earnings Surprise History - Jabil has a history of beating consensus EPS estimates, having exceeded expectations in the last reported quarter by +9.44% [13]. - Over the last four quarters, Jabil has successfully beaten consensus EPS estimates each time [14]. Conclusion - While Jabil does not appear to be a strong candidate for an earnings beat, investors should consider other factors when making decisions regarding the stock ahead of the earnings release [17].

Group 1 - Jabil (JBL) is currently trading below its 50-day moving average and is set to release its fourth-quarter results on September 25 [1] - The stock is in a consolidation pattern with a buy point identified at 232.84, indicating potential for upward movement [1] - Jabil is recognized as a significant player in the artificial intelligence sector, with expectations of a 50% surge in its data center business due to the AI boom [4] Group 2 - Jabil operates in over 25 countries, focusing on the design, development, and manufacturing of electronic products [1] - The company has been included in IBD's lists of top-rated growth stocks, highlighting its strong market position [1][4] - The stock is currently featured as IBD Stock of the Day, reflecting its prominence in the market [4]

Group 1 - Jabil Inc. (NYSE:JBL) is recognized for its consistent stock repurchases, with a rate of 5% annually, and is noted for its strong performance in the tech and healthcare contract manufacturing sectors [1] - The company is currently trading at 22 times earnings, indicating a potentially attractive valuation despite recent price increases [1] - Jabil provides a range of services including manufacturing, design, and product management, which positions it well to navigate tariff challenges and support clients in the current market environment [1] Group 2 - Competitor Celestica is performing exceptionally well, which may reflect positively on Jabil's market position and potential for growth [1] - There is a suggestion that certain AI stocks may present greater upside potential compared to Jabil, indicating a competitive landscape in the investment space [1]

Core Insights - Jabil Inc. (JBL) and Corning Incorporated (GLW) are prominent players in the technology manufacturing sector, with Jabil focusing on electronics manufacturing services and Corning specializing in glass substrates and optical solutions [1][2][3]. Jabil Inc. (JBL) - Jabil operates in 100 locations across 30 countries, benefiting from strong margins and cash flow dynamics, along with extensive end-market experience and technical capabilities [4][6]. - The company has a centralized procurement process and a connected factory network that enhances production scalability [5]. - Jabil's revenue is expected to grow due to demand in AI data centers, capital equipment, and warehouse automation, alongside the adoption of 5G and cloud computing [7]. - However, Jabil faces competition from various electronic manufacturers and geopolitical tensions, which may impact its margins [8]. - The Zacks Consensus Estimate for Jabil's 2025 sales and EPS indicates year-over-year increases of 0.9% and 10.6%, respectively, with EPS estimates trending upward [13]. Corning Incorporated (GLW) - Corning is experiencing improved demand driven by its innovations, particularly in fiber optic solutions, which are crucial for mobile devices and cloud computing [9][10]. - The company has reorganized its operating structure into five Market-Access Platforms to enhance efficiency and unlock synergies [11]. - Despite its strengths, Corning's revenue is heavily reliant on the Display and Optical segments, which are sensitive to consumer spending [12]. - The Zacks Consensus Estimate for Corning's 2025 sales and EPS suggests year-over-year increases of 11% and 25.5%, respectively, with EPS estimates also trending upward [15]. Comparative Analysis - Over the past year, Jabil's stock has increased by 105.8%, while Corning's has risen by 75.3% [16]. - Jabil's price/earnings ratio is 18.84, which is lower than Corning's 26.4, making Jabil appear more attractive from a valuation perspective [16]. - Both companies are expected to see improvements in sales and profits in 2025, but Corning's growth expectations are significantly higher [20].

Group 1 - Jabil, Inc. (JBL) has experienced a stock price increase of 97.9% over the past year, which is lower than the industry's growth of 127.8% and Celestica Inc.'s increase of 361.6% but higher than Flex Ltd.'s growth of 76.6% [1][8] - The company's strategy of end-market and product diversification is a significant growth catalyst, aiming to ensure that no single product or product family exceeds 5% of operating income or cash flows in any fiscal year [3][5] - Jabil's revenue growth is expected to be driven by strong demand in healthcare, cloud, retail, and industrial sectors, alongside the adoption of 5G wireless and cloud computing [4][9] Group 2 - Jabil has raised its 2025 revenue outlook to $29 billion and adjusted EPS to $9.33, with expectations of generating over $1.2 billion in adjusted free cash flow [8][9] - The company has restructured its internal operations to align more closely with specific end markets, aiming to develop domain-specific expertise and enhance responsiveness to market demands [6][15] - Jabil's collaboration with Intel on 800G silicon photonics modules positions it as a key player in the AI/ML ecosystem, promising high performance and reliability in data transmission [10][11] Group 3 - The Zacks Consensus Estimate for Jabil's 2025 earnings has increased by 8.7% to $9.39 per share, indicating positive market sentiment regarding the company's growth potential [12][17] - Jabil is well-positioned to capitalize on growth opportunities in AI data center hardware, power and energy infrastructure, and healthcare, supported by strong margins and robust free cash flow [15][16] - The company has a long-term earnings growth expectation of 16.6% and a trailing four-quarter average earnings surprise of 6.7%, reflecting its strong financial outlook [17]

Company Performance - Extreme Networks (EXTR) has shown a year-to-date performance increase of approximately 27.7%, significantly outperforming the Computer and Technology sector, which has returned an average of 12.9% [4] - The Zacks Consensus Estimate for EXTR's full-year earnings has increased by 6% over the past quarter, indicating improved analyst sentiment and a stronger earnings outlook [4] - Extreme Networks holds a Zacks Rank of 2 (Buy), suggesting it has favorable characteristics for outperforming the market in the near term [3] Industry Context - Extreme Networks is part of the Computer - Networking industry, which has seen an average gain of 16.6% this year, indicating that EXTR is performing better than its immediate industry peers [6] - The Computer and Technology group, which includes 605 companies, ranks 5 in the Zacks Sector Rank, reflecting the overall strength of this sector [2] - Jabil (JBL), another stock in the Computer and Technology sector, has returned 42.3% year-to-date and has a Zacks Rank of 2 (Buy), showcasing strong performance within the sector [5]

Core Insights - Jabil, Inc. (JBL) is expanding its portfolio to leverage the growing cloud and AI data-center infrastructure market, which is currently led by hyperscalers like Google, Amazon, and Microsoft [1][2] Group 1: Market Trends - The AI data center market is projected to grow from $13.62 billion in 2025 to $60.49 billion by 2030, reflecting a compound annual growth rate (CAGR) of 28.3% [3] - AI-as-a-service is gaining traction, prompting enterprises to utilize hyperscaler data centers for their AI needs due to their scalability, lower operating expenses, and high computational power [2] Group 2: Company Initiatives - Jabil is investing $500 million in a multi-year expansion of its manufacturing footprint in the Southeast U.S. to position itself as a key U.S.-based manufacturing partner for hyperscalers [3] - The acquisition of Mikros Technologies enhances Jabil's capabilities in liquid cooling and thermal management, while a partnership with Endeavour Energy LLC allows for on-demand data center capacity [4] Group 3: Financial Performance - Jabil anticipates generating $7.1 billion in revenues from the data center vertical in fiscal 2025, indicating a remarkable 54% year-over-year growth [5][9] - Jabil's stock has increased by 92.9% over the past year, although its forward P/E ratio of 18.94 is below the industry average of 22.18 [8][11] Group 4: Competitive Landscape - Jabil faces competition from Celestica, Inc. and Flex Ltd., both of which are also expanding their presence in the AI data center market [6][7] - Celestica is strengthening its position with industry-leading 400G and 800G switch products and collaborations with AMD and Broadcom [6]

Industry Overview - The electronics manufacturing services (EMS) industry provides design, engineering, and manufacturing services to electronics original equipment manufacturers (OEMs) and is currently ranked in the top 4% of the Zacks Industry Rank [1] - The industry has delivered a remarkable 102.8% return over the past year and a 48.7% year-to-date return, indicating strong performance and potential for continued outperformance in the next three to six months [2] Company Analysis: Celestica Inc. (CLS) - Celestica Inc. is a leading global EMS provider, offering a wide range of manufacturing and supply-chain solutions tailored to various customer needs [6] - The company is experiencing strong demand in the Connectivity & Cloud Solutions segment, particularly in its Hyperscaler Portfolio Solutions networking business and optical programs [7] - Celestica is well-positioned in the AI infrastructure market, projected to reach $223.45 billion by 2030, with a compound annual growth rate of 30.4% from 2024 to 2030 [8] - For 2025, the Zacks Consensus Estimate indicates revenues of $11.63 billion (up 20.6% year over year) and earnings per share of $5.55 (up 43% year over year) [11] - The short-term average price target for CLS shares suggests a potential increase of 13.3% from the last closing price of $181.34, with a maximum upside of 35.1% [13] Company Analysis: Jabil Inc. (JBL) - Jabil Inc. is a major global supplier of EMS solutions, providing design, production, product management, and after-market services across various industries [14] - The company is benefiting from strong momentum in capital equipment, AI-powered data center infrastructure, cloud, and digital commerce sectors [15] - Jabil plans to invest $500 million to enhance its manufacturing capabilities for the AI data center vertical, strengthening its position in the AI hardware supply chain [17] - For fiscal 2026, the Zacks Consensus Estimate shows revenues of $30.93 billion (up 6.1% year over year) and earnings per share of $11.05 (up 17.8% year over year) [22] - The short-term average price target for JBL shares indicates a potential increase of 14.5% from the last closing price of $204.05, with a maximum upside of 24.9% [23]

Core Insights - Celestica Inc. (CLS) and Jabil Inc. (JBL) are prominent players in the electronics manufacturing services (EMS) industry, with Celestica being one of the largest EMS companies globally, serving various sectors including cloud-based services and business enterprises [1][4] - Jabil is also a major global supplier of EMS solutions, providing a wide range of services across multiple industries such as aerospace, automotive, and telecommunications [2][10] - Both companies are well-positioned to meet the growing demands of artificial intelligence (AI) within the EMS landscape [3][8] Celestica Overview - Celestica has over two decades of manufacturing experience and focuses on delivering cloud-optimized data storage and networking solutions, which are increasingly in demand due to the rise of AI applications [4][5] - The company emphasizes product diversification and aims to strengthen its presence in high-value markets, which enhances business resilience by reducing dependence on any single industry [5] - Despite its strengths, Celestica faces challenges with high research and development costs and stiff competition from other industry giants, which have led to margin pressures [6] Jabil Overview - Jabil operates in 100 locations across 30 countries, benefiting from strong margins and cash flow dynamics, along with extensive end-market experience and technical capabilities [7][10] - The company is expected to see growth driven by AI data center infrastructure and the adoption of 5G and cloud computing, supported by effective supply chain management [10][11] - However, Jabil also contends with a competitive environment and geopolitical tensions that may impact its margins [11] Financial Performance and Estimates - Celestica's 2025 sales and EPS estimates indicate a year-over-year growth of 20.6% and 43%, respectively, with a positive trend in EPS estimates over the past 60 days [12] - In contrast, Jabil's 2025 sales and EPS growth is projected at 0.9% and 10.6%, respectively, with a slight upward trend in EPS estimates [14] - Over the past year, Celestica has outperformed Jabil significantly, with a price increase of 244.1% compared to Jabil's 89.7% [15] Valuation Comparison - Jabil's shares trade at a lower price/earnings ratio of 18.73 compared to Celestica's 29.28, making Jabil appear more attractive from a valuation perspective [15] - Despite Jabil's favorable valuation metrics, Celestica has shown superior revenue and EPS growth, leading to a stronger overall investment case for Celestica at this time [17]

Company Performance - Jabil (JBL) closed at $206.10, down 4.43% from the previous trading session, underperforming the S&P 500's daily loss of 0.59% [1] - Prior to the recent trading, Jabil shares had lost 3.38%, lagging behind the Computer and Technology sector's gain of 3.91% and the S&P 500's gain of 2.49% [1] Earnings Forecast - The upcoming EPS for Jabil is projected at $2.92, representing a 26.96% increase compared to the same quarter of the previous year [2] - Revenue is expected to be $7.6 billion, indicating a 9.17% growth compared to the corresponding quarter of the prior year [2] Annual Estimates - For the entire year, earnings are forecasted at $9.39 per share and revenue at $29.15 billion, reflecting changes of +10.6% and +0.93% respectively compared to the previous year [3] Analyst Revisions - Recent revisions to analyst forecasts for Jabil are important as they indicate changing near-term business trends, with positive revisions reflecting analysts' confidence in business performance [4] Zacks Rank and Performance - Jabil currently holds a Zacks Rank of 2 (Buy), with the Zacks Rank system showing an impressive track record of outperformance [6] - The Zacks Consensus EPS estimate has remained steady over the past month [6] Valuation Metrics - Jabil is trading at a Forward P/E ratio of 22.98, which is higher than the industry average Forward P/E of 21.38, suggesting a premium valuation [7] - The company has a PEG ratio of 1.39, compared to the industry average PEG ratio of 1.42 [8] Industry Context - The Electronics - Manufacturing Services industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 10, placing it in the top 5% of over 250 industries [9]