Group 1 - 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 is projected to report quarterly revenue of $7.03 billion, compared to $6.76 billion a year earlier [1] - Jabil signed a memorandum of understanding with AVL Software and Functions GmbH, which is expected to enhance its capabilities in the e-drive and software sector [2] Group 2 - Goldman Sachs analyst Mark Delaney maintained a Buy rating and raised the price target from $165 to $188 [5] - Barclays analyst George Wang maintained an Overweight rating and increased the price target from $184 to $206 [5] - JP Morgan analyst Samik Chatterjee maintained an Overweight rating but reduced the price target from $175 to $154 [5] - UBS analyst David Vogt maintained a Neutral rating and raised the price target from $152 to $157 [5] - Stifel analyst Matthew Sheerin reiterated a Buy rating and increased the price target from $150 to $160 [5]

Group 1 - Jabil Inc. is expected to announce Q3 FY'25 results on June 17, 2025, with earnings projected at approximately $2.30 per share, a 20% increase year-over-year, and revenues around $7 billion, reflecting a 4% year-over-year growth [2] - The company is benefiting from strong performance in capital equipment, cloud and data center infrastructure, and digital commerce end-markets, with AI-related revenue projected to reach $7.5 billion for FY 2025, representing a 40% increase [2] - Jabil currently holds a market capitalization of $20 billion, with recorded revenue of $27 billion over the past twelve months, yielding an operating profit of $1.3 billion and net income of $484 million [2] Group 2 - Historical data indicates that Jabil has had 20 earnings data points over the past five years, with 14 positive one-day returns, resulting in a 70% positive return rate, which drops to 58% when considering the last three years [4] - The median of the 14 positive returns is 5.7%, while the median of the 6 negative returns is -8.0% [4] - There is a strategy to assess the correlation between short-term and medium-term post-earnings returns, which can guide trading decisions based on favorable one-day returns [3]

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]

Summary of Jabil's Q2 Fiscal Year 2025 Earnings Call Company Overview - **Company**: Jabil - **Quarter**: Second Quarter of Fiscal Year 2025 - **Revenue**: $6.7 billion, a 3% year-on-year increase when excluding $250 million from the divested mobility business [1][2] Key Financial Metrics - **Core Operating Income**: $334 million - **Core Operating Margin**: 5% - **Net Interest Expense**: $61 million - **GAAP Operating Income**: $245 million - **GAAP Diluted Earnings Per Share**: $1.06 - **Core Diluted Earnings Per Share**: $1.94, up 26 cents from the previous year [2] Segment Performance - **Regulated Industry Segment**: Revenue of approximately $2.7 billion, down 8% year-on-year due to weakness in renewable energy and EV markets, but core operating margin increased by 20 basis points to 4.8% [2] - **Intelligent Infrastructure Segment**: Revenue of $2.6 billion, up 18% year-on-year, driven by strong demand in AI-related cloud and data center infrastructure, with a core operating margin of 5.3% [2] - **Connected Living and Digital Commerce Segment**: Revenue of $1.3 billion, down 13% year-on-year due to mobility divestiture, but excluding this, revenue growth was approximately 4% [2][3] Cash Flow and Balance Sheet - **Cash Flow from Operations**: $334 million - **Net Capital Expenditures**: $73 million - **Adjusted Free Cash Flow for Q2**: $261 million, bringing year-to-date adjusted free cash flow to $487 million - **Projected Free Cash Flow for FY25**: Expected to exceed $1.2 billion [3][4] Guidance for Q3 FY25 - **Regulated Industries Revenue**: Expected to be $3 billion, down approximately 1% year-on-year - **Intelligent Infrastructure Revenue**: Expected to be $2.8 billion, up approximately 22% year-on-year - **Connected Living and Digital Commerce Revenue**: Expected to be $1.2 billion, down 16% year-on-year - **Total Company Revenue for Q3**: Expected in the range of $6.7 billion to $7.3 billion [5] Strategic Insights - **Geopolitical Positioning**: Jabil emphasizes its U.S. manufacturing footprint, which is crucial for navigating geopolitical complexities and tariff implications. The company has 30 sites in the U.S. and is well-positioned to support customers looking to shift manufacturing [6][11] - **AI and Digital Commerce Growth**: AI-related revenue is projected to reach approximately $7.5 billion in FY25, reflecting a 40% year-on-year increase. Digital commerce is expected to grow by 14% in FY25 [8][9] - **Acquisition Impact**: The acquisition of Pharmaceuticals International, Inc. enhances Jabil's capabilities in the pharmaceutical sector, opening a $20 billion addressable market [9] Market Challenges and Cautions - **Caution in EV and Renewable Energy Markets**: The company remains cautious regarding the EV outlook and renewable energy sectors, indicating potential challenges ahead [7][9] - **Tariff Uncertainties**: Jabil is closely monitoring tariff situations, particularly concerning China, Canada, and Mexico, and is prepared to adapt its strategies accordingly [16][18] Conclusion - Jabil's strong Q2 results reflect resilience and adaptability in a dynamic market environment. The company is positioned for future growth, particularly in AI and digital commerce, while remaining cautious about certain end markets. The strategic focus on U.S. manufacturing and recent acquisitions are expected to bolster Jabil's competitive edge moving forward [10][19]