Financial Performance - Net revenue for Q2 fiscal year 2025 was $6.7 billion, slightly down from $6.8 billion in Q2 fiscal year 2024[5]. - U.S. GAAP operating income for Q2 was $245 million, compared to $1.1 billion in the same quarter last year[17]. - Core diluted earnings per share (Non-GAAP) for Q2 was $1.94, down from $7.31 in Q2 fiscal year 2024[17]. - The company reported a net income of $117 million for Q2, significantly lower than $927 million in Q2 fiscal year 2024[17]. - Net income for the six months ended February 28, 2025, was $217 million, a decrease from $1,121 million for the same period in 2024, representing a decline of approximately 80.7%[19]. - Operating income (U.S. GAAP) for the six months ended February 28, 2025, was $442 million, down from $1,434 million in the prior year, reflecting a decrease of about 69.1%[20]. - Diluted earnings per share (U.S. GAAP) for the six months ended February 28, 2025, was $1.93, down from $8.66 in the same period of 2024, a decline of approximately 77.7%[20]. Revenue Outlook - The company expects third quarter net revenue to be between $6.7 billion and $7.3 billion[3]. - Fiscal year 2025 net revenue outlook is set at $27.9 billion, with a core operating margin of 5.4%[4]. Cash Flow and Assets - Adjusted free cash flow for fiscal year 2025 is projected to exceed $1.2 billion[4]. - Total current assets as of February 28, 2025, were $12.6 billion, a decrease from $12.8 billion as of August 31, 2024[15]. - Cash and cash equivalents at the end of the period were $1,592 million, down from $2,566 million at the end of the same period in 2024, a decrease of about 37.9%[19]. - The company reported a net cash provided by operating activities of $646 million for the six months ended February 28, 2025, compared to $666 million for the same period in 2024, a slight decrease of 3%[22]. - Adjusted free cash flow (Non-GAAP) for the six months ended February 28, 2025, was $487 million, significantly higher than $221 million for the same period in 2024, indicating an increase of approximately 120%[22]. - Total cash flows used in financing activities for the six months ended February 28, 2025, were $746 million, compared to $1,455 million in the same period of 2024, a decrease of about 48.8%[19]. - The company reported a decrease in cash flows from investing activities, with a net cash used of $503 million for the six months ended February 28, 2025, compared to a net cash provided of $1,558 million in the prior year[19]. Business Operations - Jabil's diversified portfolio continues to show resilience, particularly in capital equipment and cloud infrastructure markets[2]. - The company incurred $361 million in cash paid for business and intangible asset acquisitions, net of cash, during the six months ended February 28, 2025, compared to $93 million in the prior year[19]. - The company recorded a gain from the divestiture of businesses of $942 million in the prior year, which significantly impacted the year-over-year comparison[20].

Financial Performance - Jabil Inc. is set to release its second-quarter financial results on March 20, with expected earnings of $1.83 per share, an increase from $1.68 per share in the same period last year [1] - The company projects quarterly revenue of $6.4 billion, down from $6.77 billion a year earlier [1] Strategic Collaborations - On February 25, Jabil announced a pilot and strategic collaboration with Apptronik to develop Apollo humanoid robots for integration into specific manufacturing operations [2] Analyst Ratings - Goldman Sachs analyst Mark Delaney maintained a Buy rating and raised the price target from $160 to $179 [4] - Barclays analyst George Wang maintained an Overweight rating and increased the price target from $157 to $179 [4] - Stifel analyst Matthew Sheerin reiterated a Buy rating and boosted the price target from $150 to $160 [4] - UBS analyst David Vogt maintained a Neutral rating and increased the price target from $128 to $152 [4] - JP Morgan analyst Samik Chatterjee maintained an Overweight rating but cut the price target from $137 to $133 [4]

Core Insights - Jabil (JBL) has a strong track record of exceeding earnings estimates, particularly in the last two quarters, with an average surprise of 5.05% [1] - The company reported earnings of $2 per share for the most recent quarter, surpassing the expected $1.87 per share, resulting in a surprise of 6.95% [2] - For the previous quarter, Jabil's actual earnings were $2.30 per share against an estimate of $2.23, yielding a surprise of 3.14% [2] Earnings Estimates and Predictions - Recent estimates for Jabil have been increasing, with a positive Earnings ESP (Expected Surprise Prediction) indicating a likelihood of an earnings beat [3] - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [4] - Jabil currently has an Earnings ESP of +0.92%, suggesting analysts are optimistic about its near-term earnings potential [6] Zacks Rank and Earnings Release - The combination of a positive Earnings ESP and a Zacks Rank of 2 (Buy) indicates a strong possibility of another earnings beat for Jabil [6] - The next earnings report for Jabil is anticipated to be released on March 20, 2025 [6] Importance of Earnings ESP - The Earnings ESP metric is crucial for predicting earnings outcomes, as a negative value can diminish its predictive power, but does not necessarily indicate a miss [7] - Companies can still beat consensus EPS estimates despite a negative Earnings ESP, and some stocks may remain stable even if they miss estimates [7] - Utilizing the Earnings ESP Filter can help identify the best stocks to buy or sell prior to earnings reports [8]

Financial Performance - Jabil Inc. is set to release its second-quarter financial results on March 20, with analysts expecting earnings of $1.83 per share, an increase from $1.68 per share in the same period last year [1] - The company projects quarterly revenue of $6.4 billion, down from $6.77 billion a year earlier [1] - Goldman Sachs analyst Mark Delaney has maintained a Buy rating on Jabil and raised the price target from $160 to $179 [1] Dividend Information - Jabil currently offers an annual dividend yield of 0.24%, with a quarterly dividend of 8 cents per share, totaling 32 cents annually [2] - To earn $500 monthly from dividends, an investment of approximately $2,542,875 or around 18,750 shares is required, while $100 monthly would need about $508,575 or 3,750 shares [2] - The dividend yield is calculated by dividing the annual dividend payment by the stock's current price, which can fluctuate based on stock price changes [3] Market Reaction - Jabil's shares fell by 2% to close at $135.62 on Tuesday [4]

Core Viewpoint - Jabil Inc. is expected to report a revenue decline in Q2 fiscal 2025 due to competition, demand softness, and macroeconomic challenges, despite strategic acquisitions and innovations potentially providing some support [2][5]. Group 1: Earnings Expectations - Jabil is set to release its Q2 fiscal 2025 results on March 20, with a consensus revenue estimate of $6.41 billion, down from $6.77 billion in the same quarter last year [6]. - The consensus estimate for earnings per share (EPS) is $1.81, reflecting an improvement from $1.68 reported in the prior-year quarter [6]. - The company achieved a trailing four-quarter earnings surprise of 3.52% on average, with a 6.95% surprise in the last reported quarter [1][6]. Group 2: Strategic Developments - Jabil has collaborated with Apptronik to support the production of Apollo humanoid robots, which will be integrated into its manufacturing operations for various tasks, enhancing its position in manufacturing automation [3]. - The acquisition of Pharmaceutics International, Inc. is expected to significantly enhance Jabil's pharmaceutical product offerings, allowing for the development of advanced solutions for pharma companies [4]. Group 3: Market Challenges - Soft demand trends in sectors like Networks and Communications and Connected Living are anticipated to hinder net sales growth [5]. - Increased competition from both domestic and international electronic manufacturers and service providers is impacting margins [5].

Company Performance - Jabil's stock closed at $157.51, reflecting a -1% change from the previous trading day, which lagged behind the S&P 500's daily loss of 0.47% [1] - Over the past month, Jabil's shares experienced a loss of 0.27%, outperforming the Computer and Technology sector's loss of 4.34% and the S&P 500's loss of 1.78% [1] Earnings Estimates - Jabil is expected to report an EPS of $1.81, representing a 7.74% increase compared to the same quarter last year [2] - Revenue is forecasted to be $6.41 billion, indicating a 5.25% decline from the corresponding quarter of the previous year [2] Fiscal Year Projections - For the entire fiscal year, earnings are projected at $8.78 per share, with revenue expected to be $27.35 billion, reflecting changes of +3.42% and -5.31% respectively from the previous year [3] - Changes in analyst estimates are crucial as they indicate the evolving nature of near-term business trends, with positive revisions suggesting analyst optimism [3] Valuation Metrics - Jabil has a Forward P/E ratio of 18.13, which is lower than the industry average Forward P/E of 18.92, suggesting that Jabil is trading at a discount [6] - The company has a PEG ratio of 1.45, compared to the industry average PEG ratio of 1.26, indicating a relatively higher valuation when considering growth [7] Industry Context - The Electronics - Manufacturing Services industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 4, placing it in the top 2% of over 250 industries [8] - The Zacks Industry Rank assesses the strength of industry groups based on the average Zacks Rank of individual stocks, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [8]

Core Insights - The article emphasizes the importance of value investing and highlights specific companies that may be undervalued based on various financial metrics [2][9]. Company Analysis: Jabil (JBL) - Jabil holds a Zacks Rank of 2 (Buy) and a Value grade of A, with a current P/E ratio of 17.92, which is lower than the industry average of 20.34 [4]. - The Forward P/E for JBL has fluctuated between 10.72 and 18.57 over the past 52 weeks, with a median of 13.85 [4]. - JBL's PEG ratio is 1.43, compared to the industry average of 1.59, with a historical range of 0.96 to 2.17 and a median of 1.35 [5]. - The P/CF ratio for JBL is 9.85, significantly lower than the industry average of 12.18, with a historical range of 5.56 to 11.38 and a median of 6.98 [6]. Company Analysis: Sanmina (SANM) - Sanmina has a Zacks Rank of 1 (Strong Buy) and a Value grade of A, currently trading at a forward earnings multiple of 14.03 [7]. - The PEG ratio for Sanmina is 1.05, which is lower than the industry average of 1.59, with a historical range of 0.71 to 1.55 and a median of 1.07 [8]. - Sanmina's P/B ratio is 2.02, compared to the industry's price-to-book ratio of 6.88, with a historical range of 1.38 to 2.02 and a median of 1.60 [8]. Conclusion - Both Jabil and Sanmina are identified as potentially undervalued stocks, supported by their strong earnings outlook and favorable financial metrics [9].

Core Viewpoint - Jabil is expected to report financial results that indicate a mixed performance, with earnings per share forecasted to increase while revenue is anticipated to decline compared to the previous year [2][3]. Financial Performance - Jabil's stock closed at $167.32, reflecting a gain of 0.48% from the previous session, outperforming the S&P 500's daily gain of 0.03% [1] - The company is forecasted to report an EPS of $1.81, representing a 7.74% increase from the same quarter last year [2] - Revenue is expected to be $6.41 billion, indicating a 5.25% decrease from the same quarter last year [2] - For the annual period, earnings are anticipated to be $8.78 per share, with revenue projected at $27.35 billion, reflecting changes of +3.42% and -5.31% respectively from the previous year [3] Analyst Estimates - Recent modifications to analyst estimates for Jabil suggest a favorable outlook on the company's business health and profitability [4] - The Zacks Consensus EPS estimate has increased by 0.33% in the past month, and Jabil currently holds a Zacks Rank of 3 (Hold) [6] Valuation Metrics - Jabil is trading at a Forward P/E ratio of 18.97, which is lower than the industry average of 19.74 [7] - The company has a PEG ratio of 1.52, compared to the industry average PEG ratio of 1.32 [7] Industry Context - The Electronics - Manufacturing Services industry, which includes Jabil, is part of the Computer and Technology sector and holds a Zacks Industry Rank of 13, placing it in the top 6% of over 250 industries [8]

Group 1: Stock Performance - Jabil (JBL) closed at $163.62, with a daily increase of +1.11%, outperforming the S&P 500's gain of 0.39% [1] - Over the past month, Jabil's shares have risen by 5.96%, while the Computer and Technology sector gained only 0.04% and the S&P 500 increased by 1.7% [1] Group 2: Upcoming Financial Results - Jabil is projected to report earnings of $1.81 per share, reflecting a year-over-year growth of 7.74% [2] - The consensus estimate for revenue is $6.41 billion, indicating a 5.25% decrease compared to the same quarter last year [2] Group 3: Fiscal Year Projections - For the entire fiscal year, earnings are estimated at $8.78 per share, with revenue projected at $27.35 billion, representing changes of +3.42% and -5.31% from the prior year, respectively [3] Group 4: Analyst Estimates and Stock Price Correlation - Recent adjustments to analyst estimates for Jabil reflect evolving short-term business trends, with upward revisions indicating analysts' positivity towards the company's operations [4] - Changes in estimates are correlated with near-term stock prices, and the Zacks Rank system incorporates these changes for actionable insights [5] Group 5: Zacks Rank and Valuation - Jabil currently holds a Zacks Rank of 3 (Hold), with the consensus EPS estimate moving 0.33% higher over the past month [6] - The Forward P/E ratio for Jabil is 18.44, which is lower than the industry average of 19.5, suggesting that Jabil is trading at a discount [7] Group 6: PEG Ratio and Industry Ranking - Jabil has a PEG ratio of 1.47, compared to the Electronics - Manufacturing Services industry average of 1.28 [8] - The Electronics - Manufacturing Services industry is ranked in the top 2% of all industries, with a Zacks Industry Rank of 3 [8][9]

Group 1: Acquisition Overview - Jabil, Inc. has completed the acquisition of Pharmaceutics International, a contract development and manufacturing organization (CDMO) [1][2] - Pharmaceutics International provides tailored solutions for various phases of drug development, including formulation and manufacturing [2][3] Group 2: Strategic Implications - The acquisition marks Jabil's entry into the CDMO market, which is expected to grow significantly in the coming years [5] - Pharmaceutics International's advanced manufacturing facilities will enhance Jabil's pharmaceutical product offerings and capabilities [3][4] - Jabil's global reach and supply chain efficiency will enable Pharmaceutics International to scale production according to market demands [4] Group 3: Market Performance - Jabil's stock has increased by 24.7% over the past year, while the industry has seen a growth of 65.4% [6]