Jabil(JBL) ZACKS·2025-03-21 15:40Core 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]