Jabil (JBL) Third-quarter earnings beat estimates, revenue up year-over-year

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Jabil Inc. JBL reported non-GAAP earnings of $1.72 per share in the third quarter of fiscal 2022, which increased 32.3% year-over-year. On a GAAP basis, the company’s earnings rose 35.7% to $1.52. Zacks’ consensus estimate for earnings was pegged at $1.43 per share.

Revenue rose 15.4% year-over-year to $8,328 million, beating the consensus estimate of 1.5%. Revenue performance was driven by solid demand in key end markets.

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Quarter details

Diversified Manufacturing Services (DMS) revenue grew 7% year-over-year, while Electronics Manufacturing Services (EMS) revenue grew 23% year over year.

Gross profit increased to $619 million from $568 million year-over-year. Operating profit increased from $240 million to $321 million.

Cash flow and liquidity

In the first nine months of fiscal 2022, Jabil’s operating cash flow was $745 million, compared to $671 million in the comparable period of fiscal 2021. As of May 31, 2022, the company had $1,070 million in cash and cash equivalents with $2,874 million in notes. current debt and long-term debt.

Tips

For the fourth quarter of fiscal 2022, Jabil expects revenue of between $8.1 billion and $8.7 billion. The operating profit is estimated between 367 and 427 million dollars. The company’s non-GAAP earnings per share are expected to be between $1.94 and $2.34. Non-GAAP operating profit is estimated to be between $390 million and $450 million.
The company expects DMS revenue to grow 14% in the fiscal fourth quarter, driven by growth in several end markets, such as healthcare, automotive and mobility. The EMS segment is expected to see an 11% increase in revenue driven by strong performance in digital printing and retail, industrial and semi-cap businesses, and 5G wireless and cloud.

Due to strong secular tailwinds and momentum in many end markets, the company has raised its outlook for fiscal 2022. It now expects revenue of approximately $32.8 billion and core EPS of about $7.45.

Zacks Ranking and Stocks to Consider

Jabil currently wears a Zacks Rank #3 (Hold). You can see the full list of today’s Zacks #1 Rank stocks here.

celestial CLS is a higher-ranked stock within the broader Zacks IT and Technology sector, sporting a Zacks rank of No. 2 (buy). Zacks’ consensus estimate for its current-year earnings has been revised up 4.3% in the past 60 days. Celestica posted a four-quarter earnings surprise of 12.6% on average. It has gained 31.7% over the past year.

Plexus PLXS, carrying a Zacks Rank #2, is another solid choice for investors. The current year earnings consensus estimate has been revised up 7% in the past 60 days. Plexus recorded an earnings surprise for the last four quarters of 8.6% on average.

Sanmina Company SANM also carries a Zacks rank of No. 2. The consensus rating for current-year earnings has been revised up 8.4% in the past 60 days. Sanmina realized a surprise on the profits of the last four quarters of 8% on average. The stock has edged up 7.7% over the past year.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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