Core Viewpoint - Jabil's recent earnings report indicates strong financial performance, with significant revenue growth and positive market trends, leading to a 16.7% increase in share price since the last report, outperforming the S&P 500 [1] Financial Performance - Jabil reported Q1 fiscal 2026 net income of $146 million or $1.35 per share, up from $100 million or 88 cents in the prior-year quarter, driven by top-line growth [3] - Non-GAAP net income for the quarter was $309 million or $2.85 per share, compared to $228 million or $2 per share in the prior-year quarter, exceeding the Zacks Consensus Estimate of $2.72 [3] - Revenues increased to $8.3 billion from $6.99 billion year-over-year, surpassing the consensus estimate of $8.07 billion, with strong demand in the Intelligent Infrastructure segment [4] Segment Performance - The Intelligent Infrastructure segment contributed 46% of total revenues, showing a 54% year-over-year increase, supported by demand in Capital Equipment, AI-related Cloud, and Data Center Infrastructure [5] - The Regulated Industries segment accounted for 37% of revenues, with a 4% year-over-year growth driven by healthcare and packaging markets [4] - The Connected Living & Digital Commerce segment contributed 17% of total revenues, experiencing a 10% year-over-year decline due to soft demand for consumer-driven products, although growth in digital commerce partially mitigated this trend [5] Profitability Metrics - Gross profit was $742 million, up from $606 million in the year-ago quarter, while non-GAAP operating income rose to $454 million from $347 million [6] - Non-GAAP operating margin improved to 5.5% from 5% in the prior-year quarter [6] Cash Flow and Liquidity - Jabil generated $323 million of net cash from operating activities, compared to $312 million a year ago, with $1.57 billion in cash and cash equivalents as of November 30, 2025 [7] - Free cash flow stood at $272 million, up from $226 million in the previous year [7] Future Guidance - Management projects revenues for fiscal 2026 to reach $32.4 billion, with non-GAAP earnings per share expected at $11.55 and over $1.3 billion in adjusted free cash flow [8][9] Market Sentiment - Since the earnings release, there has been an upward trend in estimates for Jabil, indicating positive market sentiment [10] - Jabil holds a Zacks Rank 2 (Buy), suggesting expectations for above-average returns in the coming months [12]

Core Insights - Celestica Inc. (CLS) is focusing on product diversification and enhancing its presence in high-value markets to mitigate operational risks [1] - The company has a strong foundation in research and development, enabling it to produce both high-volume electronic products and complex technology infrastructure products across various industries [1] Group 1: Product and Service Offerings - Celestica provides a comprehensive range of solutions including design and development, new product introduction, engineering services, component sourcing, electronics manufacturing and assembly, testing, systems integration, logistics, product licensing, after-market repair, and IT asset management [2] - The diverse portfolio includes enterprise-level data communications and information processing infrastructure, such as routers, switches, data center interconnects, edge solutions, servers, and storage-related products, along with lifecycle solutions for mission-critical systems in aerospace/defense and medical device sectors [3] Group 2: Market Position and Performance - Celestica's diversified product and customer base enhances business resilience by reducing dependence on a single industry, thereby minimizing the adverse effects of economic downturns in specific sectors [3] - The company's stock has surged 180% over the past year, outperforming the industry growth of 92.7% [6] - Celestica trades at a forward price-to-sales ratio of 2.19, which is above the industry average of 0.98 [9] Group 3: Competitive Landscape - Jabil Inc. (JBL) emphasizes end-market and product diversification as a growth catalyst, aiming to ensure that no single product or product family exceeds 5% of operating income or cash flows in any fiscal year [4] - Sanmina Corporation (SANM) offers end-to-end solutions that streamline processes and lower costs through a vertically integrated manufacturing process, maintaining a strong presence across multiple end markets [5]

Core Viewpoint - TTM Technologies, Inc. specializes in manufacturing printed circuit boards and RF components, which are essential for high-performance products in sectors such as defense, AI data centers, automobiles, and medical equipment [1] Company Overview - TTM Technologies focuses on producing objective, data-driven research primarily about small- to mid-cap companies, which are often overlooked by many investors [1] Industry Context - The company's products are critical in various high-growth industries, indicating a strong potential for future demand driven by advancements in technology and increased reliance on electronic components [1]

Summary of Hon Hai Management Call Company Overview - **Company**: Hon Hai Precision Industry Co., Ltd. (2317.TW) - **Industry**: Technology, specifically focusing on AI servers and computing power Key Points AI Server Business Outlook - Management is optimistic about the AI server business, projecting a production capacity increase of 1.5x to 2x by 2026 [2] - Solid demand is anticipated from Cloud Service Providers (CSPs), Neocloud, and sovereign customers [2] - Hon Hai plans to add two more CSP customers for AI server racks in 2026 and is diversifying into ASIC servers [2] Profitability and Operating Profit Margin (OPM) - The company aims to maintain stable OPM despite potential fluctuations in gross margin (GM) due to the increasing revenue mix from GPU server racks, which are margin dilutive [3] - Management is implementing design standardization, modulation, and greater integration of in-house components to enhance profitability [3] Impact of Rising Memory Prices - Management believes the impact of rising memory prices on end demand will be manageable, as the company's clients are industry leaders with strong bargaining power [4] - Concerns regarding memory price increases are acknowledged, but the company expects limited effects on working capital due to its procurement strategies [4] Financial Projections - The target price for Hon Hai is set at NT$400, reflecting a 70.6% upside from the current price of NT$234.50 [17] - Revenue projections for 2026 are estimated at NT$13.7 billion, with EBITDA expected to reach NT$521.5 million [17] Risks - Key risks include slower-than-expected ramp-up of the AI server business, weaker performance in electric vehicle (EV) solutions, and increased competition in the consumer electronics EMS sector [16] Additional Insights - The increasing computing power of AI chips is expected to benefit Hon Hai, necessitating stronger server design capabilities [8] - The company's in-house cooling components provide a competitive edge in enhancing profitability [10] Conclusion Hon Hai is positioned to capitalize on the growing demand for AI servers, with a focus on maintaining profitability amidst challenges such as rising memory prices and market competition. The company's strategic initiatives and strong client relationships are expected to support its growth trajectory through 2026 and beyond.

Core Viewpoint - Jabil's shares increased nearly 2% after BofA Securities raised its price target to $280 from $265, maintaining a Buy rating, reflecting increased confidence in the company's growth outlook [1] Group 1: Company Growth Outlook - BofA hosted an investor meeting with Jabil executives and expressed confidence in the company's growth outlook, particularly in the Intelligent Infrastructure business, which is expected to see strong demand for the next 24 to 36 months [1] - Jabil is gaining greater visibility from customers, with purchase orders arriving earlier due to lengthening component lead times [2] Group 2: Revenue Growth Projections - While guidance remained unchanged, BofA is more confident that Jabil could accelerate AI-related revenue growth next year, potentially returning to approximately 50% year-over-year growth, compared to the 35% growth guided for fiscal 2026 [3] - The price objective was raised to $280 based on a 20x multiple applied to calendar 2027 earnings of $13.75 per share, indicating increased confidence in revenue growth and margin expansion [3] Group 3: Strategic Opportunities - Looking towards fiscal 2027, Jabil sees opportunities to partner with networking OEMs as data center architectures evolve towards rack-level systems [2]

Core Viewpoint - Celestica Inc. has transitioned from being a low-margin contract assembler to a key engineering partner for hyperscalers developing AI data centers, emphasizing its leadership in high-bandwidth networking and rapid production timelines [1] Group 1: Company Positioning - Celestica is now recognized as a highly embedded engineering partner rather than just a contract assembler, indicating a shift in its business model and value proposition [1] - The company focuses on high-bandwidth networking, which is critical for AI data centers, showcasing its strategic alignment with industry trends [1] Group 2: Market Strategy - The emphasis on fast time-to-production highlights Celestica's competitive advantage in meeting the demands of hyperscalers, which is essential in the rapidly evolving tech landscape [1]

Core Insights - Jabil Inc. and Sanmina Corporation are leading players in the electronics manufacturing services (EMS) industry, with Jabil being a prominent provider of EMS solutions globally [1][2] - The EMS industry is expected to grow significantly due to digital transformation, AI investments, and IoT adoption [3] Jabil Insights - Jabil has a diverse product portfolio and strong presence in various sectors, including AI data center infrastructure, automotive, and renewable energy [4] - The AI data center market is projected to grow from $13.62 billion in 2025 to $60.49 billion in 2030, with a compound annual growth rate of 28.3% [5] - Recent acquisitions, such as Hanley Energy Group and Mikros Technologies, have enhanced Jabil's capabilities in data center power management and thermal management [6] - Jabil operates a robust supply chain network across 100 locations in 30 countries, which enhances its reliability and scalability [7] - Jabil faces competition from companies like Celestica and Flex, but its strategic initiatives position it well for competitive advantage [7] Sanmina Insights - Sanmina emphasizes innovation and product diversification, working closely with customers to adapt to future manufacturing needs [8] - The company has developed a connected manufacturing process that improves decision-making by providing real-time data from global factories [10] - Sanmina has faced supply chain disruptions due to geopolitical issues but is working to strengthen its supply chain and is launching a new facility in Houston, TX [11] - The company is gaining traction in cloud and AI infrastructure markets, although competition from other EMS players remains a concern [12] Financial Performance - Sanmina's 2025 sales and EPS estimates imply year-over-year growth of 72.2% and 59.6%, respectively, with stable EPS estimates over the past 60 days [13] - Jabil's 2025 sales and EPS estimates indicate year-over-year growth of 8.8% and 18.46%, with a 4.52% upward trend in EPS estimates over the past 60 days [15] - Over the past year, Sanmina's stock has increased by 92.2%, while Jabil's has risen by 47.3% [16] - From a valuation perspective, Sanmina's shares trade at a forward P/E ratio of 15.11, compared to Jabil's 18.49 [17] Investment Outlook - Both companies are expected to benefit from net sales growth driven by AI proliferation, but Sanmina faces ongoing supply chain challenges [19] - Jabil's strategic acquisitions and product innovations position it favorably in the AI hardware supply chain, making it a more attractive investment option with a Zacks Rank 2 (Buy) [19][18]

Core Insights - TTM Technologies, Inc. has been awarded the fifth annual TTM Chair for Community Service Award for its contributions to the Central New York community in 2025 [1][2] - The award includes a $20,000 donation to the United Way of Central New York, reflecting TTM's commitment to community service [1][5] Company Overview - TTM Technologies, Inc. is a leading global manufacturer specializing in technology products such as mission systems, RF components, RF microwave/microelectronic assemblies, and advanced printed circuit boards (PCBs) [3] - The company emphasizes time-to-market, providing design, engineering, and manufacturing services that help customers expedite product development [3] Community Engagement - The Syracuse Campus of TTM has a long-standing partnership with the United Way of Central New York, which was reinforced in 2025 through various community service initiatives [2] - Activities included donation drives, creating greeting cards for seniors, cleaning veterans' gravestones, and volunteering at local soup kitchens [2] - The TTM Chair for Community Service Award was established to honor the legacy of retired Board Chairman Robert Klatell, promoting community leadership and public service [2]

Core Insights - Earnings estimates for Sanmina Corporation (SANM) for 2025 and 2026 have increased by 38.9% to $9.64 and 43.4% to $11.46 respectively, indicating positive sentiment regarding the stock's growth potential [1][7]. Group 1: Connected Manufacturing - Sanmina is focusing on 42Q connected manufacturing, which integrates data from global factories and suppliers, creating a real-time information base that enhances visibility and accelerates decision-making [2]. - The 42Q connected manufacturing system has been deployed in over 70 factories across 15 countries, connecting more than 35,000 manufacturing devices in the cloud, allowing for a customer-focused approach to anticipate manufacturing needs [3]. Group 2: Vertical Integration - Sanmina provides end-to-end solutions including product design, manufacturing, assembly, testing, and aftermarket support, which allows clients to rely on a single partner throughout the product lifecycle [4]. - The vertically integrated manufacturing process streamlines operations and reduces costs, enabling greater economies of scale and faster time to market [5]. Group 3: Market Performance - Sanmina's stock has surged 100.7% over the past year, outperforming the industry growth of 85.4%, although it has lagged behind Celestica Inc. which increased by 197.7% [8]. - Despite positive stock performance, Sanmina faces challenges from supply chain disruptions, geopolitical issues, and intense competition in the electronics manufacturing services sector [9]. Group 4: Future Outlook - Sanmina is well-positioned for long-term growth due to its strong presence in multiple end markets and a focus on high-growth industries, supported by its global network and expertise in advanced electronics manufacturing [12]. - However, the company is likely to face pressure on bottom-line growth due to competition, supply chain issues, and high R&D costs affecting profitability [13].

Core Insights - Nortech Systems Incorporated has appointed Andrew Walko as Senior Vice President of Global Operations, effective immediately, to enhance leadership in strategic initiatives [1][2] Leadership Transition - Andrew Walko replaces John Lindeen, who is set to retire in the first quarter of 2026, and will oversee global operations including facilities in the U.S., Mexico, and China [3] Responsibilities and Focus Areas - Walko's responsibilities include managing the global supply chain, new product introductions, production planning, and ensuring on-time delivery while optimizing the company's near-shoring strategy and manufacturing capacity [3] - The focus will be on reducing lead times, improving quality standards, mitigating supply chain risks, and enhancing cost productivity through innovative customer partnerships [3] Company Profile - Nortech specializes in complex cable harnesses, printed circuit board assemblies, and box builds for low-volume, high-mix global manufacturing [4] - The company has made strategic investments in the U.S., Mexico, and China, which have diversified its capabilities and improved efficiencies, supporting future growth [4] - Nortech serves various markets including medical imaging, medical devices, aerospace & defense, and industrial sectors, with a vertically integrated manufacturing and supply chain capability [5]