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]

Core Insights - Khaveen Investments operates as a Macroquantamental Hedge Fund with a globally diversified investment portfolio, utilizing a multifaceted approach that combines global macro, fundamental, and quantitative strategies [1] Investment Focus - The company emphasizes investments in transformative technologies, including Artificial Intelligence, Cloud Computing, 5G, Autonomous & Electric Vehicles, FinTech, Augmented & Virtual Reality, and the Internet of Things [1] Clientele - Khaveen Investments serves a diverse range of accredited investors, including High Net Worth Individuals, Corporates, Associations, and Institutions globally [1]

The latest trading session saw Jabil (JBL) ending at $162.64, denoting a +1.03% adjustment from its last day's close. The stock outperformed the S&P 500, which registered a daily gain of 0.53%. Elsewhere, the Dow gained 0.38%, while the tech-heavy Nasdaq added 0.25%.Prior to today's trading, shares of the electronics manufacturer had gained 11.87% over the past month. This has outpaced the Computer and Technology sector's loss of 0.75% and the S&P 500's gain of 1.24% in that time.Market participants will be ...

Core Viewpoint - Jabil's recent earnings report shows a mixed performance with net income declining year over year, but revenues surpassing estimates, indicating potential resilience despite market challenges [2][3][4]. Financial Performance - Jabil reported a net income of $100 million or $0.88 per share for Q1 fiscal 2025, down from $194 million or $1.47 per share in the prior year, primarily due to top-line contraction [3]. - Non-GAAP net income was $228 million or $2 per share, compared to $343 million or $2.60 per share in the previous year, exceeding the Zacks Consensus Estimate of $1.87 [3]. - Revenues decreased to $6.99 billion from $8.4 billion year over year, but exceeded the consensus estimate of $6.6 billion [4]. Segment Performance - The Regulated Industries segment contributed 42% of revenues, with a 7% decline year over year due to weakness in the Auto & Transportation vertical [4]. - The Intelligent Infrastructure segment accounted for 36% of total revenues, showing a 5% year-over-year increase supported by demand in Capital Equipment, Cloud, and Data Center Infrastructure [5]. - The Connected Living & Digital Commerce segment contributed 22% of total revenues, with a significant 46% year-over-year increase driven by strong performance in Digital Commerce [5]. Profitability Metrics - Gross profit was reported at $606 million, down from $775 million in the prior year [6]. - Non-GAAP operating income was $347 million, a decrease from $499 million year over year, with a non-GAAP operating margin of 5% compared to 6% in the previous year [6]. Cash Flow and Liquidity - Jabil generated $312 million in net cash from operating activities, down from $448 million in the previous year [7]. - As of November 30, 2024, the company had $2.05 billion in cash and cash equivalents, alongside $2.88 billion in notes payable and long-term debt [7]. Future Outlook - For Q2 fiscal 2025, Jabil expects revenues between $6.1 billion and $6.7 billion, with non-GAAP operating income projected between $286 million and $346 million [8]. - For the full fiscal 2025, revenues are projected at $27.3 billion, with adjusted free cash flow estimated at $1.2 billion and non-GAAP earnings per share expected at $8.75 [9]. Estimate Trends - There has been a downward trend in estimates for Jabil over the past month, indicating a potential shift in market expectations [10][12]. - Jabil currently holds a Zacks Rank of 3 (Hold), suggesting an expectation of in-line returns in the coming months [12]. Investment Scores - Jabil has a Growth Score of B, a Momentum Score of D, and a Value Score of A, placing it in the top 20% for the value investment strategy [11].