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Jabil (JBL) to Report Q2 Earnings: What's in the Cards?
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Jabil (JBL - Free Report) is set to report second-quarter fiscal 2021 results on Mar 16.
For second-quarter fiscal 2021, Jabil expects total revenues between $6.2 billion and $6.8 billion.
Diversified Manufacturing Services (DMS) revenues are forecast to be $3.5 billion, up roughly 22% year over year. Electronics Manufacturing Services (EMS) revenues are forecast to be $3 billion, which indicates a decline of nearly 8% year over year.
Moreover, the company’s core earnings are expected between 83 cents and $1.03 per share on a non-GAAP basis.
The Zacks Consensus Estimate for earnings has been unchanged at 95 cents over the past 30 days, indicating growth of 90% year over year. The consensus mark for revenues is pegged at $6.5 billion, indicating growth of 6.19% from the year-ago quarter’s reported figure.
Notably, the company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing in one, the average surprise being 16.9%.
Let’s see how things have shaped up for this announcement.
Jabil’s fiscal second-quarter results are expected to have benefited from contract wins in healthcare, cloud and 5G. Moreover, improving end-market diversification is a key catalyst.
Additionally, solid demand for the company’s 5G wireless and cloud computing services is expected to have aided growth in the EMS segment.
Moreover, the company is expected to have benefited from the growing traction in its mobility and connected devices business induced by pandemic-led remote working and learning environment in the to-be-reported quarter.
The DMS segment is likely to have benefited from an improved business mix, driven by Jabil’s impressive diversification efforts. Notably, Jabil’s $5-billion healthcare and packaging solutions have witnessed strong adoption from healthcare, medical device and consumer packaged goods companies globally.
Additionally, the expansion of Jabil’s sustainable packaging offerings with the acquisition of Ecologic Brands in the fiscal second quarter bodes well for its DMS segment and is expected to have aided top-line growth.
However, the company’s variable cost is expected to have remained elevated due to business-interruption costs in China and other parts of the world in the to-be-reported quarter.
Key Developments in Q2
During the fiscal second quarter, Jabil announced the acquisition of Ecologic Brands, a California-based sustainable paper-based packaging solutions provider. Per the deal, Ecologic’s team and operations will be integrated with Jabil’s Packaging Solutions division.
On Jan 21, Jabil announced that its board of directors has approved a quarterly dividend of 8 cents per share, to be paid out to shareholders on Mar 2, 2021.
What Our Model Says
According to the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Jabil has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With a Favorable Combination
Here are some stocks you may consider, as according to our proven model, these have the right mix of elements to beat estimates this time around.
PLBY Group, Inc. (PLBY - Free Report) presently has an Earnings ESP of +40.00% and a Zacks Rank of 3.
Titan Machinery Inc. (TITN - Free Report) currently has an Earnings ESP of +27.27% and a Zacks Rank of 3.
5G Revolution: 3 Stocks to Make Your Move
With super high data speed, it will make current cell phones obsolete and unlock the full potential of big data, cloud computing, and artificial intelligence. In the next few years this industry is predicted to create 22 million jobs and a stunning $12.3 trillion in revenue.
Today you have an historic chance to pursue almost unimaginable gains like Microsoft, Netflix, and Apple in their early phases. Zacks has released a Special Report that reveals our . . .
Image: Bigstock
Jabil (JBL) to Report Q2 Earnings: What's in the Cards?
Jabil (JBL - Free Report) is set to report second-quarter fiscal 2021 results on Mar 16.
For second-quarter fiscal 2021, Jabil expects total revenues between $6.2 billion and $6.8 billion.
Diversified Manufacturing Services (DMS) revenues are forecast to be $3.5 billion, up roughly 22% year over year. Electronics Manufacturing Services (EMS) revenues are forecast to be $3 billion, which indicates a decline of nearly 8% year over year.
Moreover, the company’s core earnings are expected between 83 cents and $1.03 per share on a non-GAAP basis.
The Zacks Consensus Estimate for earnings has been unchanged at 95 cents over the past 30 days, indicating growth of 90% year over year. The consensus mark for revenues is pegged at $6.5 billion, indicating growth of 6.19% from the year-ago quarter’s reported figure.
Notably, the company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing in one, the average surprise being 16.9%.
Let’s see how things have shaped up for this announcement.
Jabil, Inc. Price and EPS Surprise
Jabil, Inc. price-eps-surprise | Jabil, Inc. Quote
Factors to Watch
Jabil’s fiscal second-quarter results are expected to have benefited from contract wins in healthcare, cloud and 5G. Moreover, improving end-market diversification is a key catalyst.
Additionally, solid demand for the company’s 5G wireless and cloud computing services is expected to have aided growth in the EMS segment.
Moreover, the company is expected to have benefited from the growing traction in its mobility and connected devices business induced by pandemic-led remote working and learning environment in the to-be-reported quarter.
The DMS segment is likely to have benefited from an improved business mix, driven by Jabil’s impressive diversification efforts. Notably, Jabil’s $5-billion healthcare and packaging solutions have witnessed strong adoption from healthcare, medical device and consumer packaged goods companies globally.
Additionally, the expansion of Jabil’s sustainable packaging offerings with the acquisition of Ecologic Brands in the fiscal second quarter bodes well for its DMS segment and is expected to have aided top-line growth.
However, the company’s variable cost is expected to have remained elevated due to business-interruption costs in China and other parts of the world in the to-be-reported quarter.
Key Developments in Q2
During the fiscal second quarter, Jabil announced the acquisition of Ecologic Brands, a California-based sustainable paper-based packaging solutions provider. Per the deal, Ecologic’s team and operations will be integrated with Jabil’s Packaging Solutions division.
On Jan 21, Jabil announced that its board of directors has approved a quarterly dividend of 8 cents per share, to be paid out to shareholders on Mar 2, 2021.
What Our Model Says
According to the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Jabil has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With a Favorable Combination
Here are some stocks you may consider, as according to our proven model, these have the right mix of elements to beat estimates this time around.
American Outdoor Brands, Inc. (AOUT - Free Report) has an Earnings ESP of +3.96% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
PLBY Group, Inc. (PLBY - Free Report) presently has an Earnings ESP of +40.00% and a Zacks Rank of 3.
Titan Machinery Inc. (TITN - Free Report) currently has an Earnings ESP of +27.27% and a Zacks Rank of 3.
5G Revolution: 3 Stocks to Make Your Move
With super high data speed, it will make current cell phones obsolete and unlock the full potential of big data, cloud computing, and artificial intelligence. In the next few years this industry is predicted to create 22 million jobs and a stunning $12.3 trillion in revenue.
Today you have an historic chance to pursue almost unimaginable gains like Microsoft, Netflix, and Apple in their early phases. Zacks has released a Special Report that reveals our . . .
Download now. Today the report is FREE >>