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Jabil (JBL) to Report Q1 Earnings: What's in the Cards?

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Jabil (JBL - Free Report) is set to report first-quarter fiscal 2022 results on Dec 16.

For the quarter, Jabil expects total revenues between $8 billion and $8.6 billion. The company expects earnings between $1.41 and $1.61 per share on a non-GAAP basis.

The Zacks Consensus Estimate for earnings has been unchanged at $1.80 per share over the past 30 days, indicating growth of 12.5% year over year. The consensus mark for revenues is pegged at $8.28 billion, suggesting growth of 5.7% from the year-ago quarter’s reported figure.

The company’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 23.19%.
 

Jabil, Inc. Price and EPS Surprise

Jabil, Inc. Price and EPS Surprise

Jabil, Inc. price-eps-surprise | Jabil, Inc. Quote

 

Let’s see how things have shaped up for this announcement.

Factors to Watch

Jabil has outperformed its peers Plexus (PLXS - Free Report) and Celestica (CLS - Free Report) on a year-to-date basis, thanks to continued end-market strength and solid operational execution.

Jabil has returned 50.5% compared with Plexus’s 20.1% and Celestica’s 28.6%. Jabil has also outperformed the Computer & Technology sector’s return of 25.9%.

Jabil’s fiscal first-quarter results are expected to reflect contract wins in healthcare, automotive, connected devices, cloud, semi-cap and 5G. Improving end-market diversification is a key catalyst.

Diversified Manufacturing Services (DMS) revenues are forecast to be $4.7 billion, suggesting growth of roughly 10% year over year. The DMS segment is likely to have benefited from an improved business mix, driven by Jabil’s impressive diversification efforts.

Electronics Manufacturing Services (EMS) revenues are forecast to be $3.6 billion, indicating no change year over year.

Jabil’s efforts to optimize its manufacturing footprint are expected to drive profits in the to-be-reported quarter.

However, Jabil witnessed some supply-chain headwinds in the fiscal fourth quarter, which are expected to continue in the fiscal first quarter. The company expects supply-chain issues to hurt through the first half of fiscal 2022.

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.

A Stock With a Favorable Combination

Here is a stock you may consider, as according to our proven model, it has the right mix of elements to beat estimates this time around.

MSC (MSM - Free Report) has an Earnings ESP of +0.34% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

MSC’s shares have lost 1.2% year to date compared with the Zacks Industrial Services industry’s decline of 39.5% and the Industrial Products sector’s return of 12.5%.