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Jabil (JBL) to Report Q4 Earnings: What's in the Cards?
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Jabil Inc. (JBL - Free Report) is set to report fiscal fourth-quarter 2017 results on Sep 27. The company has beaten the Zack Consensus Estimate in each of the trailing four quarters, delivering an average positive surprise of 9.51%.
Last quarter, the company reported better-than-expected results wherein earnings of 31 cents per share beat the Zacks Consensus Estimate of 29 cents and grew 82.4% year over year.
Revenues of $4.49 billion outpaced the Zacks Consensus Estimate of $4.41 billion and were also higher than the prior-year quarter’s figure of $4.31 billion.
Notably, in the past one year, Jabil shares have gained 35.2%, substantially outperforming the industry’s rally of 27.2%.
Let's see how things are shaping up for this announcement.
Factors at Play
Jabil continues to gain from the fast growing Electronic Manufacturing Services (EMS) sector such as industrial, renewable energy, clean tech and medical. The company’s Diversified Manufacturing Services (DMS) segment is likely to be driven by opportunities in the healthcare and packaging businesses. The company’s Green Point business is also expected to do well.
The realignment program is also aiding the company to significantly cut back its expenses while maintaining its production capacities. Despite a financial impact of $195 million over the next two years, this initiative is likely to bode well for the company.
For the fourth quarter, Jabil expects total revenue to increase 11% (at mid-point) year over year and be in the range of $4.7–$5.1 billion. Core operating income is estimated in the range of $165–$215 million.
Diversified Manufacturing Services revenues are forecast to grow 26% year over year.
Electronics Manufacturing Services revenues are anticipated to witness moderate improvement of 2% on a year-over-year basis.
However, escalating market competition and macroeconomic headwinds continue to be concerns.
Earnings Whispers
Our proven model does not conclusively show that Jabil is likely to deliver a positive surprise this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here as you will see below:
Zacks ESP: Jabil’s Earnings ESP is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at 62 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Jabil’s Zacks Rank #3 increases the predictive power of ESP. However, we need to have a positive ESP to be confident about an earnings surprise.
We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks That Warrant a Look
Here are a few companies that you may want to consider as our model shows that these have the right combination of elements to deliver an earnings beat in their upcoming release:
Universal Display (OLED - Free Report) with an Earnings ESP of +11.11% and a Zacks Rank #1.
Instructure (INST - Free Report) with an Earnings ESP of +2.33% and a Zacks Rank #1.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
Jabil (JBL) to Report Q4 Earnings: What's in the Cards?
Jabil Inc. (JBL - Free Report) is set to report fiscal fourth-quarter 2017 results on Sep 27. The company has beaten the Zack Consensus Estimate in each of the trailing four quarters, delivering an average positive surprise of 9.51%.
Last quarter, the company reported better-than-expected results wherein earnings of 31 cents per share beat the Zacks Consensus Estimate of 29 cents and grew 82.4% year over year.
Revenues of $4.49 billion outpaced the Zacks Consensus Estimate of $4.41 billion and were also higher than the prior-year quarter’s figure of $4.31 billion.
Notably, in the past one year, Jabil shares have gained 35.2%, substantially outperforming the industry’s rally of 27.2%.
Let's see how things are shaping up for this announcement.
Factors at Play
Jabil continues to gain from the fast growing Electronic Manufacturing Services (EMS) sector such as industrial, renewable energy, clean tech and medical. The company’s Diversified Manufacturing Services (DMS) segment is likely to be driven by opportunities in the healthcare and packaging businesses. The company’s Green Point business is also expected to do well.
The realignment program is also aiding the company to significantly cut back its expenses while maintaining its production capacities. Despite a financial impact of $195 million over the next two years, this initiative is likely to bode well for the company.
For the fourth quarter, Jabil expects total revenue to increase 11% (at mid-point) year over year and be in the range of $4.7–$5.1 billion. Core operating income is estimated in the range of $165–$215 million.
Diversified Manufacturing Services revenues are forecast to grow 26% year over year.
Electronics Manufacturing Services revenues are anticipated to witness moderate improvement of 2% on a year-over-year basis.
However, escalating market competition and macroeconomic headwinds continue to be concerns.
Earnings Whispers
Our proven model does not conclusively show that Jabil is likely to deliver a positive surprise this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here as you will see below:
Zacks ESP: Jabil’s Earnings ESP is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at 62 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Jabil’s Zacks Rank #3 increases the predictive power of ESP. However, we need to have a positive ESP to be confident about an earnings surprise.
We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks That Warrant a Look
Here are a few companies that you may want to consider as our model shows that these have the right combination of elements to deliver an earnings beat in their upcoming release:
Micron Technology (MU - Free Report) with an Earnings ESP of +0.14% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Universal Display (OLED - Free Report) with an Earnings ESP of +11.11% and a Zacks Rank #1.
Instructure (INST - Free Report) with an Earnings ESP of +2.33% and a Zacks Rank #1.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>