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]

Core Insights - U.S. stock markets have experienced extreme volatility due to the imposition of "Liberation Day" tariffs, with AI infrastructure stocks showing significant valuation potential [1][3][4] Group 1: Market Volatility - The Dow fell over 4,500 points and the Nasdaq Composite dropped 13% from April 3-8, entering bear market territory [3] - The S&P 500 declined more than 12% and approached a bear market, closing below 5,000 for the first time since April 2024 [4] - Following a tariff rate restriction to 10% for most trading partners, the S&P 500 surged 9.5%, marking its third-largest single-day rally since World War II [5] Group 2: AI Infrastructure Stocks - Five AI infrastructure stocks with favorable Zacks Rank include NVIDIA Corp. (NVDA), Broadcom Inc. (AVGO), Marvell Technology Inc. (MRVL), Jabil Inc. (JBL), and Super Micro Computer Inc. (SMCI) [2][7] - These stocks have strong short-term and long-term revenue and earnings growth potential, with positive earnings estimate revisions in the last 30 days [7] Group 3: NVIDIA Corp. (NVDA) - NVIDIA is the leader in generative AI-powered GPUs, with over 1.3 million Hopper GPUs and 3.6 million Blackwell GPUs sold [8] - Upcoming products include Blackwell Ultra in 2025 and Vera Rubin in 2026, with a shift towards reasoning AI models expected to enhance revenue generation [9][10] - Expected revenue and earnings growth rates for the current year are 52.1% and 47.5%, respectively, with a Zacks Consensus Estimate improvement of 0.5% [11] Group 4: Broadcom Inc. (AVGO) - Broadcom's AI revenues surged 220% to $12.2 billion in fiscal 2024, representing 41% of semiconductor revenues [13] - The company is set to ship next-generation XPUs in 3 nanometers to hyperscale customers by the second half of fiscal 2025 [14] - Expected revenue and earnings growth rates for the current year are 21% and 35.5%, respectively, with a Zacks Consensus Estimate improvement of 0.6% [16] Group 5: Marvell Technology Inc. (MRVL) - Marvell's data center revenues increased 98% year-over-year, driven by AI demand for PAM products and ZR electro-optics [20] - Expected revenue and earnings growth rates for the current year are 43.8% and 75.8%, respectively, with a Zacks Consensus Estimate improvement of 0.4% [22] Group 6: Jabil Inc. (JBL) - Jabil benefits from momentum in AI-powered data center infrastructure and has a focus on product diversification [25] - Expected revenue and earnings growth rates for the current year are -3.4% and 5.5%, respectively, with a Zacks Consensus Estimate improvement of 2.1% [27] Group 7: Super Micro Computer Inc. (SMCI) - Super Micro provides IT solutions for AI/ML and cloud technologies, with a focus on NVDA's high-performance GPUs [31] - Expected revenue and earnings growth rates for the current year are 59.2% and 15.4%, respectively, with a Zacks Consensus Estimate remaining unchanged [34]

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].