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Jabil (JBL - Free Report) reported third-quarter fiscal 2021 earnings of $1.30 per share, which beat the Zacks Consensus Estimate by 26.2% and improved substantially from the year-ago quarter’s figure of 37 cents.
Revenues increased 13.9% year over year to $7.21 billion that beat management’s guidance of $6.6-$7.2 billion. The figure also surpassed the Zacks Consensus Estimate by 4.9%.
Jabil’s third-quarter results reflected continued end-market strength and solid operational execution. The company witnessed strong top-line growth in mobility, cloud-connected devices, and semi-cap in the reported quarter.
However, Jabil witnessed some supply-chain headwinds in the fiscal third quarter, which is expected to continue in the fiscal fourth quarter. The company expects supply-chain issues to hurt through early (until the spring or summer) fiscal 2022.
Electronics Manufacturing Services (EMS) revenues accounted for 50% of total revenues and increased 8% year over year to $3.6 billion. The growth was primarily driven by robust performances by cloud and semi-cap businesses.
Diversified Manufacturing Services (DMS) revenues accounted for rest of the total revenues and improved 21% year over year to $3.6 billion. The upside can be attributed to growth in several end-markets, such as connected devices, healthcare, automotive and mobility.
Gross margin, on a GAAP basis, expanded 70 basis points (bps) year over year to 8.3%.
Core EBITDA margin expanded 110 bps on a year-over-year basis to 6.8%.
As a percentage of revenues, selling, general and administrative (SG&A) expenses declined 50 bps year over year to 4.2%, while research & development (R&D) expenses were unchanged on a year-over-year basis at 0.1%.
Non-GAAP core operating margin expanded 110 bps on a year-over-year basis to 3.8%. The strong expansion was driven by solid top-line growth.
EMS operating margin expanded 90 bps year over year to 3.8%. Moreover, DMS operating margin expanded 140 bps year over year to 3.9%.
Balance Sheet & Cash flow
As of May 31, 2021, cash and cash equivalents were $1.24 billion compared with $838 million as of Feb 28, 2021. The company ended third-quarter fiscal 2021 with committed capacity under the global credit facilities of $3.8 billion.
Jabil reported cash flow from operations of $585 million and adjusted $388 million in the reported quarter.
The company also repurchased approximately 2.5 million shares for $130 million.
Guidance
For fourth-quarter fiscal 2021, Jabil expects total revenues between $7.3 billion and $7.9 billion, suggesting an increase of 4% on a year-over-year basis at the midpoint of the range.
DMS revenues are expected to be $3.95 billion, which suggests an increase of 11% year over year. EMS revenues are forecast at $3.65 billion, which indicates a decline of 2% year over year.
Core operating income is estimated in the $280-$340 million range. The company’s earnings are expected between $1.25 and $1.45 per share on a non-GAAP basis.
Jabil raised its outlook for fiscal 2021 following impressive third-quarter results. Revenues are expected to be around $29.5 billion, with expected core margin of 4.2%.
DMS segment revenues are expected at $15.4 billion, with expected core margin of 4.7% for fiscal 2021.
Further, EMS segment revenues are expected to be $14.1 billion, with core margin projected to be 3.6%.
The company’s earnings are expected to be $5.50 per share on a non-GAAP basis.
Moreover, free cash flow for fiscal 2021 is expected to be more than $630 million.
Cognyte, CalAmp and Micron are set to reported quarterly results on Jun 22, 24 and 30, respectively.
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You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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Jabil (JBL) Q3 Earnings Beat Estimates, Revenues Rise Y/Y
Jabil (JBL - Free Report) reported third-quarter fiscal 2021 earnings of $1.30 per share, which beat the Zacks Consensus Estimate by 26.2% and improved substantially from the year-ago quarter’s figure of 37 cents.
Revenues increased 13.9% year over year to $7.21 billion that beat management’s guidance of $6.6-$7.2 billion. The figure also surpassed the Zacks Consensus Estimate by 4.9%.
Jabil’s third-quarter results reflected continued end-market strength and solid operational execution. The company witnessed strong top-line growth in mobility, cloud-connected devices, and semi-cap in the reported quarter.
However, Jabil witnessed some supply-chain headwinds in the fiscal third quarter, which is expected to continue in the fiscal fourth quarter. The company expects supply-chain issues to hurt through early (until the spring or summer) fiscal 2022.
Jabil, Inc. Price and Consensus
Jabil, Inc. price-consensus-chart | Jabil, Inc. Quote
Quarter Details
Electronics Manufacturing Services (EMS) revenues accounted for 50% of total revenues and increased 8% year over year to $3.6 billion. The growth was primarily driven by robust performances by cloud and semi-cap businesses.
Diversified Manufacturing Services (DMS) revenues accounted for rest of the total revenues and improved 21% year over year to $3.6 billion. The upside can be attributed to growth in several end-markets, such as connected devices, healthcare, automotive and mobility.
Gross margin, on a GAAP basis, expanded 70 basis points (bps) year over year to 8.3%.
Core EBITDA margin expanded 110 bps on a year-over-year basis to 6.8%.
As a percentage of revenues, selling, general and administrative (SG&A) expenses declined 50 bps year over year to 4.2%, while research & development (R&D) expenses were unchanged on a year-over-year basis at 0.1%.
Non-GAAP core operating margin expanded 110 bps on a year-over-year basis to 3.8%. The strong expansion was driven by solid top-line growth.
EMS operating margin expanded 90 bps year over year to 3.8%. Moreover, DMS operating margin expanded 140 bps year over year to 3.9%.
Balance Sheet & Cash flow
As of May 31, 2021, cash and cash equivalents were $1.24 billion compared with $838 million as of Feb 28, 2021. The company ended third-quarter fiscal 2021 with committed capacity under the global credit facilities of $3.8 billion.
Jabil reported cash flow from operations of $585 million and adjusted $388 million in the reported quarter.
The company also repurchased approximately 2.5 million shares for $130 million.
Guidance
For fourth-quarter fiscal 2021, Jabil expects total revenues between $7.3 billion and $7.9 billion, suggesting an increase of 4% on a year-over-year basis at the midpoint of the range.
DMS revenues are expected to be $3.95 billion, which suggests an increase of 11% year over year. EMS revenues are forecast at $3.65 billion, which indicates a decline of 2% year over year.
Core operating income is estimated in the $280-$340 million range. The company’s earnings are expected between $1.25 and $1.45 per share on a non-GAAP basis.
Jabil raised its outlook for fiscal 2021 following impressive third-quarter results. Revenues are expected to be around $29.5 billion, with expected core margin of 4.2%.
DMS segment revenues are expected at $15.4 billion, with expected core margin of 4.7% for fiscal 2021.
Further, EMS segment revenues are expected to be $14.1 billion, with core margin projected to be 3.6%.
The company’s earnings are expected to be $5.50 per share on a non-GAAP basis.
Moreover, free cash flow for fiscal 2021 is expected to be more than $630 million.
Zacks Rank & Stocks to Consider
Jabil currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector include Micron (MU - Free Report) , CalAmp (CAMP - Free Report) and Cognyte (CGNT - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cognyte, CalAmp and Micron are set to reported quarterly results on Jun 22, 24 and 30, respectively.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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