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Jabil (JBL) Beats Q1 Earnings Estimates on Solid Revenues
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Jabil Inc. (JBL - Free Report) reported healthy first-quarter fiscal 2023 results with year-over-year increase in revenue and earnings driven by diligent execution of operational plans. Robust end-market demand and favorable product mix also drove the quarterly performance.
Quarter Details
On a GAAP basis, quarterly earnings were $223 million or $1.61 per share compared with $241 million or $1.63 per share in the prior year. Non-GAAP earnings for the reported quarter improved to $319 million or $2.31 per share from $284 million or $1.92 per share in the year-ago quarter. The bottom line exceeded the Zacks Consensus Estimate of $2.21 per share.
Image Source: Zacks Investment Research
Revenues for the quarter improved to $9,635 million from $8,567 million a year ago, beating the consensus estimate of $9,281 million. The top line performance was driven by solid demand in key end markets driven by supported by strong secular tailwinds and portfolio refinement.
By segments, Diversified Manufacturing Services (DMS) revenues in the quarter increased 8% year over year to $5.1 billion, while Electronics Manufacturing Services (EMS) revenues were up 18% to $4.5 billion.
Cash Flow & Liquidity
For the first three months of fiscal 2023, Jabil’s operating cash flow was $1,66 million against cash utilization of $46 million in the prior-year period. As of Nov 30, 2022, the company had $1,217 million in cash and cash equivalents with $2,576 million of notes payable and long-term debt.
Guidance
For second-quarter fiscal 2023, Jabil expects revenues between $7.8 billion and $8.4 billion. Operating income is estimated in the $319-$379 million range. The company’s non-GAAP earnings per share are expected to be between $1.64 and $2.04.
For fiscal 2023, the company expects non-GAAP revenues in the vicinity of $8.40.
TESSCO Technologies Incorporated , sporting a Zacks Rank #1, delivered an earnings surprise of 126.1%, on average, in the trailing four quarters. Earnings estimates for TESSCO for the current year have moved up 44.3% since December 2021.
TESSCO offers products to the industry’s top manufacturers in mobile communications, Wi-Fi, wireless backhaul and related products. With more than three decades of experience, it delivers complete end-to-end solutions to the wireless industry.
Harmonic Inc. (HLIT - Free Report) , carrying a Zacks Rank #2 (Buy), delivered an earnings surprise of 55.5%, on average, in the trailing four quarters. Earnings estimates for Harmonic for the current year have moved up 48.6% since March 2021.
Harmonic provides video delivery software, products, system solutions and services worldwide. With more than three decades of experience, it has revolutionized cable access networking via the industry's first virtualized cable access solution, enabling cable operators to more flexibly deploy gigabit Internet service to consumers' homes and mobile devices.
AudioCodes Ltd. (AUDC - Free Report) , sporting a Zacks Rank #1, is likely to benefit from the secular tailwinds related to IP-based communications. Incorporated in 1992 and headquartered in Lod, Israel, it offers advanced communications software, products and productivity solutions for the digital workplace. It has a long-term earnings growth expectation of 9%.
AudioCodes aims to leverage its long-term partnership with Microsoft to further strengthen its market position. It is also likely to benefit from its continued focus on high-margin businesses.
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Jabil (JBL) Beats Q1 Earnings Estimates on Solid Revenues
Jabil Inc. (JBL - Free Report) reported healthy first-quarter fiscal 2023 results with year-over-year increase in revenue and earnings driven by diligent execution of operational plans. Robust end-market demand and favorable product mix also drove the quarterly performance.
Quarter Details
On a GAAP basis, quarterly earnings were $223 million or $1.61 per share compared with $241 million or $1.63 per share in the prior year. Non-GAAP earnings for the reported quarter improved to $319 million or $2.31 per share from $284 million or $1.92 per share in the year-ago quarter. The bottom line exceeded the Zacks Consensus Estimate of $2.21 per share.
Image Source: Zacks Investment Research
Revenues for the quarter improved to $9,635 million from $8,567 million a year ago, beating the consensus estimate of $9,281 million. The top line performance was driven by solid demand in key end markets driven by supported by strong secular tailwinds and portfolio refinement.
By segments, Diversified Manufacturing Services (DMS) revenues in the quarter increased 8% year over year to $5.1 billion, while Electronics Manufacturing Services (EMS) revenues were up 18% to $4.5 billion.
Cash Flow & Liquidity
For the first three months of fiscal 2023, Jabil’s operating cash flow was $1,66 million against cash utilization of $46 million in the prior-year period. As of Nov 30, 2022, the company had $1,217 million in cash and cash equivalents with $2,576 million of notes payable and long-term debt.
Guidance
For second-quarter fiscal 2023, Jabil expects revenues between $7.8 billion and $8.4 billion. Operating income is estimated in the $319-$379 million range. The company’s non-GAAP earnings per share are expected to be between $1.64 and $2.04.
For fiscal 2023, the company expects non-GAAP revenues in the vicinity of $8.40.
Zacks Rank & Stock to Consider
Jabil currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
TESSCO Technologies Incorporated , sporting a Zacks Rank #1, delivered an earnings surprise of 126.1%, on average, in the trailing four quarters. Earnings estimates for TESSCO for the current year have moved up 44.3% since December 2021.
TESSCO offers products to the industry’s top manufacturers in mobile communications, Wi-Fi, wireless backhaul and related products. With more than three decades of experience, it delivers complete end-to-end solutions to the wireless industry.
Harmonic Inc. (HLIT - Free Report) , carrying a Zacks Rank #2 (Buy), delivered an earnings surprise of 55.5%, on average, in the trailing four quarters. Earnings estimates for Harmonic for the current year have moved up 48.6% since March 2021.
Harmonic provides video delivery software, products, system solutions and services worldwide. With more than three decades of experience, it has revolutionized cable access networking via the industry's first virtualized cable access solution, enabling cable operators to more flexibly deploy gigabit Internet service to consumers' homes and mobile devices.
AudioCodes Ltd. (AUDC - Free Report) , sporting a Zacks Rank #1, is likely to benefit from the secular tailwinds related to IP-based communications. Incorporated in 1992 and headquartered in Lod, Israel, it offers advanced communications software, products and productivity solutions for the digital workplace. It has a long-term earnings growth expectation of 9%.
AudioCodes aims to leverage its long-term partnership with Microsoft to further strengthen its market position. It is also likely to benefit from its continued focus on high-margin businesses.