Core Insights - Jabil Inc. reported a significant increase in AI-driven Intelligent Infrastructure revenue, which surged approximately 51% year over year to $3.4 billion [1] - The company anticipates AI-related revenue to reach approximately $8.5 billion for the fiscal year, reflecting a year-on-year increase of over 50% [3] AI Infrastructure Acceleration and U.S. Capacity Investment - Jabil's U.S. manufacturing base now exceeds 30 locations, with a new site announced in the Southeastern U.S. involving a planned investment of $500 million over several years to meet rising AI data center infrastructure demand [2][3] Operating Margin Roadmap and Capacity Utilization Dynamics - Current company-wide capacity utilization is at 75%, below the historical range of 85%-86%, primarily due to geographic mismatches [4][5] - The underutilized capacity is concentrated outside the U.S., while AI growth is predominantly occurring within the U.S., indicating a need for optimization [5] Shareholder Returns and Capital Allocation Flexibility - Jabil executed $339 million in share repurchases during the quarter and is on track to complete a $1 billion share repurchase authorization in Q4 [6][7] - The company plans to return 80% of its free cash flow to buybacks, with projected free cash flow for the year exceeding $1.2 billion [7] Looking Ahead - Full-year core operating margins are expected to be at 5.4%, with the new U.S. site not expected to materially impact financials before FY2027 [9] - Detailed FY2026 guidance, including core operating margin and adjusted free cash flow targets, will be shared at the September investor briefing [9]

Group 1 - Jabil reported quarterly earnings of $2.55 per share, exceeding the Zacks Consensus Estimate of $2.33 per share, and up from $1.89 per share a year ago, representing an earnings surprise of 9.44% [1] - The company achieved revenues of $7.83 billion for the quarter ended May 2025, surpassing the Zacks Consensus Estimate by 10.55%, compared to $6.77 billion in the same quarter last year [2] - Jabil has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Group 2 - Jabil shares have increased approximately 25.7% since the beginning of the year, significantly outperforming the S&P 500's gain of 2.6% [3] - The company's future stock performance will largely depend on management's commentary during the earnings call and the outlook for earnings estimates [3][4] - The current consensus EPS estimate for the upcoming quarter is $2.73 on revenues of $7.12 billion, and for the current fiscal year, it is $8.93 on revenues of $27.82 billion [7] Group 3 - The Electronics - Manufacturing Services industry, to which Jabil belongs, is currently ranked in the bottom 27% of over 250 Zacks industries, indicating potential challenges ahead [8] - The correlation between near-term stock movements and earnings estimate revisions suggests that tracking these revisions can provide insights into stock performance [5][6]

Financial Data and Key Metrics Changes - Jabil reported Q3 net revenue of $7.8 billion, a 16% increase year over year, exceeding guidance by $800 million [5][11] - Core operating income reached $420 million with core operating margins at 5.4%, a 20 basis point improvement year over year [6][11] - Core diluted earnings per share for Q3 was $2.55, up 35% compared to the same quarter last year [7][11] Performance by Business Segment - Regulated Industries segment revenue was $3.1 billion, flat year over year, reflecting softness in EV and renewable markets [7][8] - Intelligent Infrastructure segment revenue was $3.4 billion, up approximately 51% year on year, driven by AI-related cloud and data center infrastructure [8][9] - Connected Living and Digital Commerce segment revenue was $1.3 billion, down approximately 7% year over year, mainly due to softness in consumer-driven products [9][10] Market Data and Key Metrics Changes - Inventory days decreased to 74 days, with cash flow from operations at $406 million for Q3 [10][11] - The company expects Q4 revenue for Regulated Industries to be $2.9 billion, down 5% year on year, while Intelligent Infrastructure is projected to grow to $3.3 billion, up approximately 42% year over year [12][13] Company Strategy and Development Direction - Jabil is focusing on expanding its U.S. manufacturing footprint, particularly in AI and data center infrastructure, with a planned investment of $500 million over several years [19][20] - The company aims to enhance core margins and optimize cash flow while returning value to shareholders through share repurchases [25][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate geopolitical uncertainties and highlighted the strength of its diversified portfolio [15][24] - The outlook for fiscal year 2025 has been raised to approximately $29 billion in revenue, with expectations of generating over $1.2 billion in adjusted free cash flow [25][26] Other Important Information - Jabil's debt to core EBITDA ratio is approximately 1.4 times, indicating a healthy balance sheet [11] - The company repurchased $339 million of its shares in Q3 and is on track to complete a $1 billion share repurchase authorization [11][12] Q&A Session Summary Question: Growth expectations for AI-related revenues - Management confirmed AI-related revenue is projected to reach $8.5 billion for fiscal 2025, with strong growth anticipated in the segment [31][32] Question: Operating margin improvement - Management indicated that achieving operating margins above 6% would depend on better capacity utilization and growth in higher-margin businesses [36][39] Question: Risks associated with sales growth - Management noted that the majority of revenue growth was not due to pull-in buying related to tariff uncertainties, particularly in capital equipment and cloud data center infrastructure [41][42] Question: U.S. manufacturing expansion rationale - The new U.S. investment is aimed at diversifying the customer base and not solely for existing customers [44][45] Question: Trends in the transceiver business - Management reported strong growth in the transceiver business, with demand for advanced products like 1.6T expected to increase in the near future [72][73] Question: Future capital allocation strategy - Management emphasized a commitment to returning value to shareholders through buybacks while remaining open to strategic acquisitions [62][64]

Financial Data and Key Metrics Changes - Jabil reported Q3 net revenue of $7.8 billion, a 16% increase year over year, exceeding guidance by $800 million [5][10] - Core operating income reached $420 million with core operating margins at 5.4%, a 20 basis point improvement year over year [6][10] - Core diluted earnings per share for Q3 was $2.55, up 35% compared to the same quarter last year [6][10] Performance by Business Segment - Regulated Industries segment revenue was $3.1 billion, flat year over year, reflecting softness in EV and renewable markets [7] - Intelligent Infrastructure segment revenue was $3.4 billion, up approximately 51% year on year, driven by AI-related cloud and data center infrastructure demand [7][8] - Connected Living and Digital Commerce segment revenue was $1.3 billion, down approximately 7% year over year, mainly due to softness in consumer-driven products [8] Market Data and Key Metrics Changes - Inventory days decreased to 74 days, with cash flow from operations at $406 million for Q3 [9][10] - The company expects Q4 revenue for Regulated Industries to be $2.9 billion, down 5% year on year, while Intelligent Infrastructure is projected to grow to $3.3 billion, up approximately 42% year over year [11][12] Company Strategy and Development Direction - Jabil is focusing on expanding its U.S. manufacturing footprint, particularly in AI and data center infrastructure, with a planned investment of $500 million over several years [19][20] - The company aims to enhance core margins and optimize cash flow while returning value to shareholders through share repurchases [25][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate geopolitical uncertainties and highlighted the strength of its diversified portfolio [14][25] - The company raised its revenue guidance for fiscal 2025 to approximately $29 billion, expecting core diluted earnings per share of $9.33 for the year [25][26] Other Important Information - Jabil's debt to core EBITDA ratio is approximately 1.4 times, indicating a healthy balance sheet [10] - The company repurchased $339 million of its shares in Q3 and is on track to complete a $1 billion share repurchase authorization in Q4 [10] Q&A Session Summary Question: What is the expected growth in AI-related revenues for fiscal 2026 and beyond? - Management indicated that AI-related revenue is projected to reach approximately $8.5 billion for fiscal 2025, with further guidance to be provided in September [32][34] Question: What needs to happen for operating margins to reach 6% or more? - Management noted that improving capacity utilization and focusing on higher-margin business segments could help achieve this goal [37][39] Question: How is the company assessing risks related to strong sales potentially being due to pull-in buying? - Management clarified that the revenue beat was primarily in capital equipment and cloud data center infrastructure, with minimal tariff impact [42][43] Question: What is the focus of the new U.S. manufacturing investment? - The investment aims to diversify the customer base and expand capabilities in AI and data center infrastructure, not just support existing customers [46][47] Question: How does the company view capital allocation between M&A and buybacks? - Management emphasized a commitment to returning value to shareholders through buybacks while remaining open to strategic acquisitions that enhance capabilities [100][102]

Core Insights - La-Z-Boy Incorporated is expected to report fourth-quarter earnings of 93 cents per share, a decrease from 95 cents per share in the same period last year, with projected quarterly revenue of $557.44 million, slightly up from $553.53 million a year earlier [1] Group 1: Earnings Expectations - Analysts anticipate La-Z-Boy's quarterly earnings to be 93 cents per share, down from 95 cents per share year-over-year [1] - The company projects quarterly revenue of $557.44 million, compared to $553.53 million in the previous year [1] Group 2: Analyst Upgrades and Price Target - Keybanc analyst Bradley Thomas upgraded La-Z-Boy from Sector Weight to Overweight, setting a price target of $46 [2] Group 3: Dividend Insights - La-Z-Boy currently offers an annual dividend yield of 2.26%, translating to a quarterly dividend of 22 cents per share, or 88 cents annually [2] - To achieve a monthly income of $500 from dividends, an investment of approximately $265,357 or around 6,818 shares is required [3] - For a more modest monthly income of $100, an investment of $53,087 or about 1,364 shares is necessary [3] Group 4: Dividend Yield Calculation - The dividend yield is calculated by dividing the annual dividend payment by the stock's current price, which can fluctuate based on changes in stock price and dividend payments [4][5]

THIRD QUARTER FISCAL YEAR 2025 Financial Results PUBLIC | ©Jabil Inc. 2025. All Rights Reserved. 1 Third Quarter FY 2025 Income Highlights | | | Three Months Ended | | --- | --- | --- | | | May 31, | May 31, | | (In millions, except for per share data) | 2025 | 2024 | | Net revenue | $7,828 | $6,765 | | U.S. GAAP operating income | $403 | $261 | | U.S. GAAP net income | $222 | $129 | | U.S. GAAP diluted earnings per share | $2.03 | $1.06 | | Core operating income (non-GAAP)1 | $420 | $350 | | Core earnings ...

Financial Performance - Net revenue for the third quarter of fiscal year 2025 was $7.8 billion, an increase from $6.765 billion in the same period last year, representing a growth of approximately 15.0%[5] - U.S. GAAP operating income for the third quarter was $403 million, compared to $261 million in the prior year, reflecting a year-over-year increase of approximately 54.3%[16] - Core diluted earnings per share (Non-GAAP) for the third quarter were $2.55, up from $1.06 in the same quarter last year, indicating a significant increase of approximately 140.5%[5] - Jabil reported a gross profit of $681 million for the third quarter, compared to $608 million in the same quarter last year, marking an increase of approximately 12.0%[16] - Net income for the nine months ended May 31, 2025, was $439 million, a decrease from $1,250 million in the same period of 2024[19] - Operating income for the nine months ended May 31, 2025, was $845 million, down from $1,695 million in the prior year[21] - Diluted earnings per share (U.S. GAAP) for the nine months ended May 31, 2025, was $3.94, compared to $9.86 in the prior year[21] - Core earnings (Non-GAAP) for the nine months ended May 31, 2025, were $722 million, compared to $786 million in the same period of 2024[21] Future Projections - The company expects fourth quarter net revenue to be between $7.1 billion and $7.8 billion, with core diluted earnings per share projected to be between $2.64 and $3.04[3] - For fiscal year 2025, Jabil anticipates net revenue of $29 billion and a core operating margin (Non-GAAP) of 5.4%[4] Cash Flow and Assets - Adjusted free cash flow for fiscal year 2025 is expected to exceed $1.2 billion, indicating strong cash generation capabilities[4] - Adjusted free cash flow for the nine months ended May 31, 2025, was $813 million, compared to $636 million for the same period in 2024[23] - Cash flows provided by operating activities for the nine months ended May 31, 2025, totaled $1,052 million, a decrease from $1,181 million in 2024[19] - Total cash and cash equivalents at the end of the period were $1,523 million, down from $2,457 million at the end of the same period in 2024[19] - The company incurred $393 million in cash paid for business and intangible asset acquisitions during the nine months ended May 31, 2025[19] - The company’s net cash used in financing activities for the nine months ended May 31, 2025, was $1,165 million, down from $1,989 million in 2024[19] Growth Segments and Strategy - The Intelligent Infrastructure segment is identified as a critical growth engine, driven by increasing demand for AI technologies[2] - The company is focused on enhancing core margins and optimizing cash flow, with plans for share repurchases and targeted investments in higher-margin opportunities[2] Total Assets - Total assets increased to $18.587 billion as of May 31, 2025, up from $17.351 billion at the end of the previous fiscal year, reflecting a growth of approximately 7.1%[15] Divestitures - The company recorded a pre-tax gain of $54 million from the divestiture of businesses during the three months ended May 31, 2025[21]

Core Viewpoint - Jabil Inc. (JBL) is expected to report year-over-year revenue growth in Q3 FY25, driven by strong demand in various sectors, including cloud and data center infrastructure, capital equipment, and digital commerce [2][11] Group 1: Financial Performance - Jabil is set to release its third-quarter fiscal 2025 results on June 17, with a consensus revenue estimate of $6.98 billion, indicating an increase from $6.77 billion in the same quarter last year [7] - The consensus estimate for earnings is $2.28, up from $1.89 reported in the prior-year quarter [7] - The company achieved an earnings surprise of 7.18% in the last reported quarter and has a trailing four-quarter earnings surprise average of 4.86% [1] Group 2: Strategic Initiatives - Jabil formed a strategic collaboration with AVL to enhance its capabilities in developing next-generation vehicle technology, which is expected to improve its commercial prospects in the automotive and transportation industry [3] - The company expanded its photonics product portfolio by launching new transceivers capable of transferring data at speeds of up to 1.6 Terabits per second, targeting the demands of AI/machine learning workloads and high-performance computing [4] - Jabil's Badger Technologies division introduced the Digital Teammate solution platform, utilizing AI and robotics to enhance employee productivity and inventory management [5] Group 3: Segment Performance - The Zacks Consensus Estimate for the Regulated Industries segment is $2.98 billion, while revenues from the Intelligent Infrastructure segment are estimated at $2.79 billion, and net sales from Connected Living and Digital Commerce are projected to reach $1.19 billion [6]

Earnings Report - Jabil Inc. is set to release its third-quarter earnings results on June 17, with analysts expecting earnings of $2.30 per share, an increase from $1.89 per share in the same period last year [1] - The company projects quarterly revenue of $7.03 billion, compared to $6.76 billion a year earlier [1] Dividend Information - Jabil has signed a memorandum of understanding with AVL Software and Functions GmbH, which may attract investor interest in its dividends [2] - The current annual dividend yield is 0.18%, translating to a quarterly dividend of $0.08 per share, or $0.32 annually [2] - To generate $500 monthly from dividends, an investment of approximately $3,297,000 or around 18,750 shares is required [3] - For a more modest income of $100 per month, an investment of $659,400 or about 3,750 shares is needed [3] Dividend Yield Dynamics - Dividend yield can fluctuate based on changes in the stock price and dividend payments [4][5] - For example, if a stock's price increases, the dividend yield decreases, and vice versa [5] - Changes in dividend payments also affect yield; an increase in dividends raises the yield if the stock price remains constant [6] Stock Performance - Jabil's shares fell by 1.8%, closing at $175.84 on the previous Friday [6]

Company Performance - Jabil (JBL) closed at $175.84, reflecting a -1.81% change from the previous day, underperforming compared to the S&P 500's daily loss of 1.13% [1] - The stock has increased by 7.54% over the past month, outperforming the Computer and Technology sector's gain of 7.36% and the S&P 500's gain of 3.55% [1] Upcoming Earnings - Jabil's earnings report is scheduled for June 17, 2025, with an expected EPS of $2.28, representing a 20.63% increase from the prior-year quarter [2] - The consensus estimate anticipates revenue of $6.98 billion, indicating a 3.18% increase from the same quarter last year [2] Annual Forecast - Zacks Consensus Estimates project earnings of $8.93 per share and revenue of $27.82 billion for the entire year, reflecting changes of +5.18% and -3.68% respectively compared to the previous year [3] - Recent changes to analyst estimates for Jabil may indicate shifting near-term business trends, with positive alterations suggesting analyst optimism [3] Valuation Metrics - Jabil has a Forward P/E ratio of 20.05, which is higher than the industry average Forward P/E of 19.66 [6] - The company has a PEG ratio of 1.6, compared to the Electronics - Manufacturing Services industry's average PEG ratio of 1.37 [7] Industry Context - The Electronics - Manufacturing Services industry ranks in the bottom 17% of all industries, with a Zacks Industry Rank of 206 [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]