Core Insights - Jabil Inc. has launched new 1.6 Terabit transceivers designed to meet the increasing demands of AI, high-performance computing, cloud infrastructure, and data center interconnects [1][6] - The transceivers utilize Intel's Silicon Photonics technology, enabling high-bandwidth and power-efficient connectivity [2][3] - Jabil's advancements in photonics technology are expected to drive incremental demand and improve financial performance, potentially boosting stock prices [6] Product Development - The 1.6T transceivers can transfer data at speeds of up to 1.6 Terabits per second, with configurations available in DR8, DR8+, and 2xFR4 [1][3] - Each transceiver can achieve speeds of 200 Gigabits per lane on both electrical and optical interfaces, enhancing intra-data center connectivity [3] - The solution doubles the bandwidth of data center racks without requiring infrastructure changes, making it a cost-effective upgrade [4] Market Position and Prospects - Jabil has a strong global presence and a connected factory network, allowing it to scale production in response to market dynamics [5] - The company is well-positioned to benefit from the long-term adoption of 5G and cloud computing technologies [5] - Jabil's commitment to photonics innovation reinforces its leadership in the industry and addresses evolving market needs [6] Financial Performance - Jabil's stock has decreased by 1.3% over the past year, contrasting with the industry's growth of 16.5% [7] - The introduction of the new transceivers is anticipated to lead to higher revenues and improved financial performance [6] Competitive Landscape - Jabil currently holds a Zacks Rank of 2 (Buy), indicating positive market sentiment [8] - Competitors like InterDigital and CommScope also hold strong rankings, with InterDigital showing an earnings surprise of 158.41% in the last four quarters [8][9]

Core Insights - Jabil, Inc. reported strong second-quarter fiscal 2025 results, with both revenue and earnings exceeding Zacks Consensus Estimates, driven by growth in data center infrastructure, cloud, and digital commerce markets, despite a year-over-year revenue decline due to weakness in some verticals [1] Financial Performance - Jabil's shares have increased by 18.4% over the past six months, attributed to robust revenues supported by a flexible business model and quick time-to-market capabilities [2] - For fiscal 2025, Jabil has raised its revenue guidance to $27.9 billion from $27.3 billion, with non-GAAP earnings expected at $8.95 per share, up from $8.75 [9] Growth Drivers - The company's focus on end-market and product diversification is a key growth catalyst, aiming for no single product or product family to exceed 5% of operating income or cash flows in any fiscal year [3] - Jabil anticipates growth from healthcare, cloud, retail, and industrial sectors, benefiting from the rapid adoption of 5G and cloud computing [4] - The company has reorganized its internal structure to align operations with specific end markets, enhancing agility and domain-specific expertise [8] Operational Strengths - Jabil operates in 100 locations across 30 countries, leveraging strong margin and cash flow dynamics, along with unmatched end-market experience and technical capabilities [5] - The centralized procurement process and a unified Enterprise Resource Planning system provide customers with end-to-end supply chain visibility [5] Earnings Performance - The stock has delivered an average earnings surprise of 4.9% over the trailing four quarters, with a long-term earnings growth expectation of 12.5% [10]

Core Insights - Jabil, Inc. reported strong second-quarter fiscal 2025 results, with both net income and revenues exceeding Zacks Consensus Estimates, despite a year-over-year decline in top-line performance due to weakness in certain verticals [1][2][3] Financial Performance - Net income on a GAAP basis was $117 million or $1.06 per share, down from $927 million or $7.31 in the prior-year quarter, influenced by a gain from the mobility business divestiture in the previous year [2] - Non-GAAP net income for the quarter was $215 million or $1.94 per share, slightly up from $213 million or $1.68 in the prior-year quarter, surpassing the Zacks Consensus Estimate of $1.81 [2] Revenue Breakdown - Total net sales decreased to $6.72 billion from $6.76 billion year-over-year, but exceeded the consensus estimate of $6.4 billion, impacted by demand softness in several end markets [3] - The Regulated Industries segment generated $2.7 billion in revenues, down 8% year-over-year, contributing 41% to total revenues, primarily due to weakness in renewable energy and electric vehicle verticals [3] - The Intelligent Infrastructure segment reported $2.6 billion in revenues, up 18% year-over-year, contributing 39% to total revenues, driven by strong demand in capital equipment, AI-related cloud, and data center infrastructure [4] - The Connected Living & Digital Commerce segment accounted for about 20% of total revenues, with net sales declining to $1.3 billion, down 13% year-over-year, due to mobility divestiture and soft demand for consumer-driven products, although growth in digital commerce and warehouse automation partially offset this decline [5] Profitability Metrics - Gross profit was $576 million compared to $630 million in the year-ago quarter, while non-GAAP operating income was $334 million, down from $338 million in the previous year, maintaining a non-GAAP operating margin of 5% [6] Cash Flow and Liquidity - Jabil generated $334 million of net cash from operating activities, an increase from $218 million in the previous year's quarter, with $1.59 billion in cash and cash equivalents as of February 28, 2025, alongside $2.88 billion in notes payable and long-term debt [7] Future Guidance - For the third quarter of fiscal 2025, revenues are expected to range between $6.7 billion and $7.3 billion, with non-GAAP operating income projected between $348 million and $408 million, and non-GAAP earnings per share estimated between $2.08 and $2.48 [8] - For the full fiscal year 2025, revenues are now projected at $27.9 billion, up from a previous estimate of $27.3 billion, with non-GAAP earnings per share expected at $8.95, an increase from $8.75 [9]

SECOND QUARTER FISCAL YEAR 2025 Financial Results PUBLIC | ©Jabil Inc. 2024. All Rights Reserved. 1 Forward Looking Statement Forward Looking Statements: This presentation contains forward-looking statements, including those regarding our anticipated financial results for our second quarter of fiscal year 2025; our guidance for future financial performance in our third quarter of fiscal year 2025 (including, net revenue, segment revenue, U.S. GAAP operating income, U.S. GAAP diluted earnings per share, core ...

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $6.7 billion, a 3% year-on-year increase when excluding $250 million from the divested mobility business in the prior year quarter [8] - Core operating income was $334 million with core operating margins at 5% [8] - GAAP diluted earnings per share was $1.06, while core diluted earnings per share was $1.94, up $0.26 from Q2 of last year [9][30] - Adjusted free cash flow for Q2 was $261 million, bringing year-to-date adjusted free cash flow to $487 million, with expectations to exceed $1.2 billion for the year [16][37] Performance by Business Segment - Regulated Industry segment reported 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 to 4.8% [10] - Intelligent Infrastructure segment saw revenue of $2.6 billion, up 18% year-on-year, driven by strong demand in AI-related cloud and data center infrastructure [11] - Connected Living & Digital Commerce segment revenue was $1.3 billion, down 13% year-on-year, but grew approximately 4% when excluding the divested mobility business [12] Market Data and Key Metrics Changes - Anticipated revenue for the Intelligent Infrastructure segment in Q3 is expected to be $2.8 billion, up approximately 22% year-over-year [19] - Revenue for the Connected Living & Digital Commerce segment in Q3 is expected to be $1.2 billion, down 16% year-over-year [20] - Overall company revenue for Q3 is expected to be in the range of $6.7 billion to $7.3 billion [21] Company Strategy and Industry Competition - The company is focusing on maintaining a large-scale global manufacturing footprint to navigate geopolitical complexities and potential tariffs [25] - Jabil is well-positioned to support customers in shifting manufacturing to the U.S., with 30 sites across the country [45] - The company anticipates strong growth in AI-related business, expecting approximately $7.5 billion in revenue for FY 2025, representing a 40% year-on-year increase [31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the diversified portfolio, with certain markets like capital equipment and data center infrastructure outperforming [30] - Caution was advised regarding electric vehicles, renewables, and 5G markets due to current uncertainties [39] - The company is actively monitoring tariff situations and believes it is well-positioned to adapt to changes [38] Other Important Information - The company completed the acquisition of Pharmaceuticals International Inc., enhancing its capabilities in the pharmaceutical sector and opening a $20 billion addressable market [35] - Inventory days increased to 80 days sequentially but decreased by 7 days year-on-year, reflecting typical seasonality [13] Q&A Session Summary Question: Can you talk about your existing footprint in the US and the ability to support customers who want to move manufacturing? - Management highlighted the extensive U.S. footprint with 30 sites and the capability to quickly establish operations to support customer needs [45][46] Question: Can you elaborate on the opportunity with silicon photonics and how you see that market growing? - Management indicated strong growth in AI revenue and highlighted the acquisition from Intel that enhanced capabilities in silicon photonics [51][52] Question: What should we read into the slight reductions in networking and healthcare forecasts for fiscal 2025? - Management clarified that the reductions were primarily due to uncertainties in the 5G infrastructure market [56] Question: Can you expand on the comment about GPU racks and liquid cooling continuing to accelerate? - Management explained that improved yields at launch are driven by design architecture and engineering capabilities, with significant potential in liquid cooling solutions [101][102] Question: How confident are you about EV production for the second half of the year? - Management expressed prudence in forecasts but noted that there are positive developments in the Chinese EV market that could offset some concerns [105][106]

Core Insights - Jabil (JBL) reported quarterly earnings of $1.94 per share, exceeding the Zacks Consensus Estimate of $1.81 per share, and showing an increase from $1.68 per share a year ago, representing an earnings surprise of 7.18% [1] - The company achieved revenues of $6.73 billion for the quarter ended February 2025, surpassing the Zacks Consensus Estimate by 4.93%, although this is a slight decrease from $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] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $2.23 on revenues of $6.73 billion, and for the current fiscal year, it is $8.76 on revenues of $27.32 billion [7] - The estimate revisions trend for Jabil is favorable, leading to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Electronics - Manufacturing Services industry, to which Jabil belongs, is currently ranked in the top 4% of over 250 Zacks industries, suggesting a strong outlook for the sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Jabil (JBL) Q2 2025 Earnings Call March 20, 2025 08:30 AM ET Company Participants Adam Berry - Senior Vice President of Investor Relations & CommunicationsGreg Hebard - CFOMike Dastoor - Director & CEORuplu Bhattacharya - DirectorSamik Chatterjee - Executive DirectorDavid Vogt - Managing DirectorGeorge Wang - Vice PresidentMelissa Dailey Fairbanks - Vice President Conference Call Participants Mark Delaney - Stock Analyst Operator Greetings and welcome to Jabil's Second Quarter Fiscal Year twenty twenty five ...

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]