Core Insights - Jabil, Inc. (JBL) reported strong third-quarter fiscal 2025 results, with both net income and revenues exceeding the Zacks Consensus Estimate, driven by growth in data center infrastructure, capital equipment, cloud, and digital commerce markets [1][10]. Financial Performance - Net income on a GAAP basis was $222 million or $2.03 per share, up from $129 million or $1.06 in the prior-year quarter, primarily due to top line growth [2]. - Non-GAAP net income for the quarter was $279 million or $2.55 per share, compared to $230 million or $1.89 in the same quarter last year, surpassing the Zacks Consensus Estimate of $2.33 [2]. - Revenues increased to $7.82 billion from $6.76 billion year-over-year, beating the consensus estimate of $7.08 billion, supported by strong demand in Intelligent Infrastructure and Connected Living & Digital Commerce [3]. Segment Performance - The Regulated Industries segment generated $3.1 billion in revenues, flat year-over-year, contributing 39% to total revenues, with declines attributed to weaknesses in renewable energy and EV verticals [4]. - The Intelligent Infrastructure segment reported $3.4 billion in revenues, up 51% year-over-year, contributing 44% of total revenues, driven by demand in Capital Equipment, AI-related Cloud, and Data Center Infrastructure [5]. - The Connected Living & Digital Commerce segment accounted for 17% of total revenues, with net sales declining to $1.3 billion, down 7% year-over-year, due to soft demand for consumer-driven products, although growth in digital commerce and warehouse automation partially offset this decline [6]. Profitability and Cash Flow - Gross profit was $681 million compared to $608 million in the prior-year quarter, while non-GAAP operating income rose to $420 million from $350 million year-over-year [7]. - Non-GAAP operating margin was 5.4%, down from 6% in the previous year [7]. - Jabil generated $406 million of net cash from operating activities in the third quarter, with $1.52 billion in cash and cash equivalents as of May 31, 2025 [8]. Future Guidance - For the fourth quarter of fiscal 2025, revenues are expected to range from $7.1 billion to $7.8 billion, with non-GAAP operating income projected between $428 million and $488 million [9]. - Management raised the fiscal 2025 revenue outlook to $29 billion from a previous estimate of $27.9 billion, with non-GAAP earnings per share expected at $9.33, up from $8.95 [11].

Core Viewpoint - The article emphasizes the importance of value investing and highlights Jabil (JBL) as a strong value stock based on its financial metrics and Zacks Rank [1][2][6] Financial Metrics - Jabil (JBL) has a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong potential for value investors [3] - The Forward P/E ratio for JBL is 18.24, which is lower than the industry average of 19.10, suggesting it may be undervalued [3] - JBL's PEG ratio stands at 1.46, compared to the industry average of 1.54, indicating favorable growth expectations relative to its valuation [4] - The P/CF ratio for JBL is 16.78, slightly below the industry average of 17.02, further supporting the notion of undervaluation based on cash flow strength [5] Investment Outlook - The combination of JBL's favorable financial metrics and strong earnings outlook positions it as a compelling value stock in the current market [6]

I am neutral on Jabil Inc. (NYSE: JBL ). My summarized thesis is that while AI-related demand is a clear long-term growth driver, the rest of JBL’s portfolio is not doing well, and the current valuation provides little marginI'm a passionate investor with a strong foundation in fundamental analysis and a keen eye for identifying undervalued companies with long-term growth potential. My investment approach is a blend of value investing principles and a focus on long-term growth. I believe in buying quality c ...

Core Insights - Jabil's share price has shown recovery, with Q3 results indicating a significant boost from AI investments, particularly in cloud and data center segments [1][4] - The company reported $7.83 billion in revenue for Q3, a 15.7% year-over-year increase, outperforming consensus estimates by 1000 basis points [4] - Jabil's guidance for Q4 and the fiscal year suggests continued strength, with expectations for revenue and earnings to exceed consensus targets [6] Financial Performance - Operating income increased by 55% and net income by 72%, with adjusted earnings of $2.55, surpassing expectations by $0.23 [5] - Despite a decline in cash balance and equity, investments and inventory increases offset these declines, with aggressive share buybacks reducing the share count by 10% year-over-year [2][3] Market Trends - Analysts maintain a Moderate Buy rating for Jabil, with a 12-month price forecast of $169.17, indicating a potential downside of 13.88% from the current price [7][8] - Institutional ownership is strong at approximately 94%, with institutions actively buying shares this year [9] - The stock has shown bullish momentum post-Q3 results, with a market surge of over 10% and indications of further upward movement [10]

Group 1: Hong Kong Stocks - Lehua Entertainment (02306) surged over 24% due to strong market performance of its toy IP "WUKUKU," with multiple new products setting sales records and the theme song exceeding 1 billion views [1] - United Energy Group (00467) rose over 7% after signing a 15-year production increase contract with Uzbekistan's UNG, involving 57.8 billion cubic meters of oil and gas production, with an initial investment of $100 million to expand into Central Asia [1] - Smoore International (06969) fell over 3% as shareholder Yiwei Lithium Energy plans to reduce its stake by 3.5% (216 million shares), resulting in a decrease of its holding to 27.23%, no longer being the controlling shareholder [1] - New World Development (00200) dropped over 5% after completing a "2 for 1" rights issue, issuing 758 million shares and raising HKD 771 million, with oversubscription of 13 times [1] - Fourth Paradigm (06682) increased over 7% after launching AI solutions for the manufacturing industry, covering production optimization to supply chain intelligence upgrades [1] - Shandong High-Tech Holdings (00412) rose over 4% as Zhongtai Securities highlighted significant synergy between its new energy and digital infrastructure, with a data center PUE value of 1.15, enhancing financial integration [1] - KANAT Optical (02276) increased over 4% due to an explosion in the smart glasses market (e-commerce transactions up 8 times), with Meta collaborating with Oakley to launch AI glasses, positioning the company with leading 3C enterprises [1] Group 2: Other Notable Stocks - Sipai Health (00314) rose over 7% after partnering with Anruijiaer to develop customized insurance, planning to sell 6 pharmacies for 5.89 million to focus on core medical insurance business [2] - SF Express (09699) increased over 5% after raising its delivery service revenue cap for 2025/26 to HKD 12.8 billion / HKD 20.5 billion, with demand growth exceeding expectations [2] - Liufu Group (00590) fell over 3% as it projected a 40% decline in profits for the 2025 fiscal year, primarily due to gold hedging losses and high base effects from acquisition gains [2] - Zhenjiu Lidu (06979) rose over 4% after announcing Yao Annan as the "Cultural Heritage Ambassador" for liquor, leveraging Huawei-related topics to boost brand visibility [2] - Ideal Auto-W (02015) dropped over 4% as Meituan's Wang Xing sold 5.73 million shares for HKD 600 million, reducing his stake to 20.61% [2] - Health Road (02587) surged over 7% as its liver disease AI management platform was selected for Beijing's digital medical verification program, supporting WHO's "2030 Hepatitis Elimination" goal [2] - Gilead Sciences-B (01672) rose over 5% after its psoriasis oral drug ASC50 completed the first dosing in Phase I clinical trials in the U.S., targeting the IL-17 pathway [2] - China Silver Group (00815) increased over 10% after partnering with Zefeng Gold to acquire a 55% stake in a lead-zinc exploration company, gaining exploration rights over 50.8 square kilometers in Tibet [2] Group 3: U.S. Stocks - Verve Therapeutics (VERV.US) skyrocketed over 80% as Eli Lilly prepares to acquire the gene-editing company for up to $1.3 billion, with $1 billion as an upfront payment and $300 million contingent on specific clinical milestones [4] - Solar energy stocks plummeted, with Sunrun (RUN.US) down over 40%, Solaredge Technologies (SEDG.US) down over 41%, and First Solar (FSLR.US) down over 22%, following a Republican proposal in the U.S. Senate to terminate wind and solar tax credits by 2028, raising concerns about the industry's outlook [4] - Reddit (RDDT.US) rose over 6% after launching the AI advertising tool Reddit Insights, enhancing ad targeting through real-time user trend analysis [4] - Bitcoin-related stocks fell, with CleanSpark (CLSK.US) down over 7% and Riot Platforms (RIOT.US) down over 5%, as Bitcoin prices dropped nearly 2% to $105,580 amid escalating tensions in the Middle East and high leverage positions in the derivatives market [4] - AMD (AMD.US) continued to rise 0.56% after officially launching the Zen5 architecture Ryzen Threadripper processors, covering the workstation and desktop markets, with a market share close to 50% in China for Q1, although there are concerns about its cost-performance ratio [5] - Brain Regen Technologies (RGC.US) surged over 30% after announcing a 38-for-1 stock split, coupled with FDA clinical trial approval news, although its actual business has no revenue and a very small float, indicating significant retail speculation [6] - Jabil (JBL.US) rose over 8%, reaching a new all-time high of $202.5, with Q3 revenue increasing 15% year-on-year to $7.83 billion, raising its full-year revenue forecast to $29 billion and planning a $500 million investment to support AI data center infrastructure [6] - Niu Technologies (NIU.US) increased over 11% after launching its new NX Play electric motorcycle on Douyin, integrating a smart riding system to enhance user experience [6] - T-Mobile US (TMUS.US) fell nearly 4% as SoftBank sold 21.5 million shares at $224 each, a 3% discount, triggering market sell-off [6] - The pharmaceutical sector saw widespread declines, with Eli Lilly (LLY.US) down over 2% and Novo Nordisk (NVO.US) down over 3%, as concerns grew over the potential impact of the U.S. Senate tax bill on the industry, coupled with profit-taking ahead of some companies' earnings reports [6] - The gold sector declined, with Gold Fields (GFI.US) down over 2.1%, and spot gold fell 0.27% to $3,375.53, as easing tensions in the Middle East reduced safe-haven demand, alongside Citigroup's bearish long-term gold price forecast [7]

Core Insights - Jabil Inc. reported a significant increase in AI-driven Intelligent Infrastructure revenue, which surged approximately 51% year over year to $3.4 billion [1] - The company anticipates AI-related revenue to reach approximately $8.5 billion for the fiscal year, reflecting a year-on-year increase of over 50% [3] AI Infrastructure Acceleration and U.S. Capacity Investment - Jabil's U.S. manufacturing base now exceeds 30 locations, with a new site announced in the Southeastern U.S. involving a planned investment of $500 million over several years to meet rising AI data center infrastructure demand [2][3] Operating Margin Roadmap and Capacity Utilization Dynamics - Current company-wide capacity utilization is at 75%, below the historical range of 85%-86%, primarily due to geographic mismatches [4][5] - The underutilized capacity is concentrated outside the U.S., while AI growth is predominantly occurring within the U.S., indicating a need for optimization [5] Shareholder Returns and Capital Allocation Flexibility - Jabil executed $339 million in share repurchases during the quarter and is on track to complete a $1 billion share repurchase authorization in Q4 [6][7] - The company plans to return 80% of its free cash flow to buybacks, with projected free cash flow for the year exceeding $1.2 billion [7] Looking Ahead - Full-year core operating margins are expected to be at 5.4%, with the new U.S. site not expected to materially impact financials before FY2027 [9] - Detailed FY2026 guidance, including core operating margin and adjusted free cash flow targets, will be shared at the September investor briefing [9]

Group 1 - Jabil reported quarterly earnings of $2.55 per share, exceeding the Zacks Consensus Estimate of $2.33 per share, and up from $1.89 per share a year ago, representing an earnings surprise of 9.44% [1] - The company achieved revenues of $7.83 billion for the quarter ended May 2025, surpassing the Zacks Consensus Estimate by 10.55%, compared to $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] Group 2 - Jabil shares have increased approximately 25.7% since the beginning of the year, significantly outperforming the S&P 500's gain of 2.6% [3] - The company's future stock performance will largely depend on management's commentary during the earnings call and the outlook for earnings estimates [3][4] - The current consensus EPS estimate for the upcoming quarter is $2.73 on revenues of $7.12 billion, and for the current fiscal year, it is $8.93 on revenues of $27.82 billion [7] Group 3 - The Electronics - Manufacturing Services industry, to which Jabil belongs, is currently ranked in the bottom 27% of over 250 Zacks industries, indicating potential challenges ahead [8] - The correlation between near-term stock movements and earnings estimate revisions suggests that tracking these revisions can provide insights into stock performance [5][6]

Financial Data and Key Metrics Changes - Jabil reported Q3 net revenue of $7.8 billion, a 16% increase year over year, exceeding guidance by $800 million [5][11] - Core operating income reached $420 million with core operating margins at 5.4%, a 20 basis point improvement year over year [6][11] - Core diluted earnings per share for Q3 was $2.55, up 35% compared to the same quarter last year [7][11] Performance by Business Segment - Regulated Industries segment revenue was $3.1 billion, flat year over year, reflecting softness in EV and renewable markets [7][8] - Intelligent Infrastructure segment revenue was $3.4 billion, up approximately 51% year on year, driven by AI-related cloud and data center infrastructure [8][9] - Connected Living and Digital Commerce segment revenue was $1.3 billion, down approximately 7% year over year, mainly due to softness in consumer-driven products [9][10] Market Data and Key Metrics Changes - Inventory days decreased to 74 days, with cash flow from operations at $406 million for Q3 [10][11] - The company expects Q4 revenue for Regulated Industries to be $2.9 billion, down 5% year on year, while Intelligent Infrastructure is projected to grow to $3.3 billion, up approximately 42% year over year [12][13] Company Strategy and Development Direction - Jabil is focusing on expanding its U.S. manufacturing footprint, particularly in AI and data center infrastructure, with a planned investment of $500 million over several years [19][20] - The company aims to enhance core margins and optimize cash flow while returning value to shareholders through share repurchases [25][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate geopolitical uncertainties and highlighted the strength of its diversified portfolio [15][24] - The outlook for fiscal year 2025 has been raised to approximately $29 billion in revenue, with expectations of generating over $1.2 billion in adjusted free cash flow [25][26] Other Important Information - Jabil's debt to core EBITDA ratio is approximately 1.4 times, indicating a healthy balance sheet [11] - The company repurchased $339 million of its shares in Q3 and is on track to complete a $1 billion share repurchase authorization [11][12] Q&A Session Summary Question: Growth expectations for AI-related revenues - Management confirmed AI-related revenue is projected to reach $8.5 billion for fiscal 2025, with strong growth anticipated in the segment [31][32] Question: Operating margin improvement - Management indicated that achieving operating margins above 6% would depend on better capacity utilization and growth in higher-margin businesses [36][39] Question: Risks associated with sales growth - Management noted that the majority of revenue growth was not due to pull-in buying related to tariff uncertainties, particularly in capital equipment and cloud data center infrastructure [41][42] Question: U.S. manufacturing expansion rationale - The new U.S. investment is aimed at diversifying the customer base and not solely for existing customers [44][45] Question: Trends in the transceiver business - Management reported strong growth in the transceiver business, with demand for advanced products like 1.6T expected to increase in the near future [72][73] Question: Future capital allocation strategy - Management emphasized a commitment to returning value to shareholders through buybacks while remaining open to strategic acquisitions [62][64]

Financial Data and Key Metrics Changes - Jabil reported Q3 net revenue of $7.8 billion, a 16% increase year over year, exceeding guidance by $800 million [5][10] - Core operating income reached $420 million with core operating margins at 5.4%, a 20 basis point improvement year over year [6][10] - Core diluted earnings per share for Q3 was $2.55, up 35% compared to the same quarter last year [6][10] Performance by Business Segment - Regulated Industries segment revenue was $3.1 billion, flat year over year, reflecting softness in EV and renewable markets [7] - Intelligent Infrastructure segment revenue was $3.4 billion, up approximately 51% year on year, driven by AI-related cloud and data center infrastructure demand [7][8] - Connected Living and Digital Commerce segment revenue was $1.3 billion, down approximately 7% year over year, mainly due to softness in consumer-driven products [8] Market Data and Key Metrics Changes - Inventory days decreased to 74 days, with cash flow from operations at $406 million for Q3 [9][10] - The company expects Q4 revenue for Regulated Industries to be $2.9 billion, down 5% year on year, while Intelligent Infrastructure is projected to grow to $3.3 billion, up approximately 42% year over year [11][12] Company Strategy and Development Direction - Jabil is focusing on expanding its U.S. manufacturing footprint, particularly in AI and data center infrastructure, with a planned investment of $500 million over several years [19][20] - The company aims to enhance core margins and optimize cash flow while returning value to shareholders through share repurchases [25][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate geopolitical uncertainties and highlighted the strength of its diversified portfolio [14][25] - The company raised its revenue guidance for fiscal 2025 to approximately $29 billion, expecting core diluted earnings per share of $9.33 for the year [25][26] Other Important Information - Jabil's debt to core EBITDA ratio is approximately 1.4 times, indicating a healthy balance sheet [10] - The company repurchased $339 million of its shares in Q3 and is on track to complete a $1 billion share repurchase authorization in Q4 [10] Q&A Session Summary Question: What is the expected growth in AI-related revenues for fiscal 2026 and beyond? - Management indicated that AI-related revenue is projected to reach approximately $8.5 billion for fiscal 2025, with further guidance to be provided in September [32][34] Question: What needs to happen for operating margins to reach 6% or more? - Management noted that improving capacity utilization and focusing on higher-margin business segments could help achieve this goal [37][39] Question: How is the company assessing risks related to strong sales potentially being due to pull-in buying? - Management clarified that the revenue beat was primarily in capital equipment and cloud data center infrastructure, with minimal tariff impact [42][43] Question: What is the focus of the new U.S. manufacturing investment? - The investment aims to diversify the customer base and expand capabilities in AI and data center infrastructure, not just support existing customers [46][47] Question: How does the company view capital allocation between M&A and buybacks? - Management emphasized a commitment to returning value to shareholders through buybacks while remaining open to strategic acquisitions that enhance capabilities [100][102]

Core Insights - La-Z-Boy Incorporated is expected to report fourth-quarter earnings of 93 cents per share, a decrease from 95 cents per share in the same period last year, with projected quarterly revenue of $557.44 million, slightly up from $553.53 million a year earlier [1] Group 1: Earnings Expectations - Analysts anticipate La-Z-Boy's quarterly earnings to be 93 cents per share, down from 95 cents per share year-over-year [1] - The company projects quarterly revenue of $557.44 million, compared to $553.53 million in the previous year [1] Group 2: Analyst Upgrades and Price Target - Keybanc analyst Bradley Thomas upgraded La-Z-Boy from Sector Weight to Overweight, setting a price target of $46 [2] Group 3: Dividend Insights - La-Z-Boy currently offers an annual dividend yield of 2.26%, translating to a quarterly dividend of 22 cents per share, or 88 cents annually [2] - To achieve a monthly income of $500 from dividends, an investment of approximately $265,357 or around 6,818 shares is required [3] - For a more modest monthly income of $100, an investment of $53,087 or about 1,364 shares is necessary [3] Group 4: Dividend Yield Calculation - The dividend yield is calculated by dividing the annual dividend payment by the stock's current price, which can fluctuate based on changes in stock price and dividend payments [4][5]