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Jabil (JBL) Q3 Earnings Beat Estimates, Revenues Rise Y/Y

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Jabil Inc. (JBL - Free Report) reported third-quarter fiscal 2022 non-GAAP earnings of $1.72 per share, which rallied 32.3% year over year. On a GAAP basis, the company’ earnings increased 35.7% to $1.52. The Zacks Consensus Estimate for earnings was pegged at $1.43 per share.

Revenues increased 15.4% year over year to $8,328 million, beating the consensus estimate by 1.5%. The top line performance was driven by solid demand in key end markets.

 

Quarter Details

Diversified Manufacturing Services (DMS) revenues rose 7% year over year, while Electronics Manufacturing Services (EMS) revenues increased 23% year over year.

Gross profit increased to $619 million from $568 million year over year. Operating income rose to $321 million from $240 million.

Cash Flow & Liquidity

In the first nine months of fiscal 2022, Jabil’s operating cash flow was $745 million compared with $671 million for the comparable period of fiscal 2021. As of May 31, 2022, the company had $1,070 million in cash and cash equivalents with $2,874 million of notes payable and long-term debt.

Guidance

For fourth-quarter fiscal 2022, Jabil expects revenues between $8.1 billion and $8.7 billion. Operating income is estimated in the $367-$427 million range. The company’s non-GAAP earnings per share are expected to be between $1.94 and $2.34. Non-GAAP operating income is estimated in the $390-$450 million range.
The company expects revenues for DMS to increase 14% in fiscal fourth quarter, driven by growth in several end markets, such as healthcare, automotive and mobility. The EMS segment is expected to witness an 11% increase in revenues driven by robust digital print and retail performances, industrial and semi cap and 5G wireless and cloud businesses.

Owing to strong secular tailwinds and momentum in many end markets, the company raised its outlook for fiscal 2022. It now expects revenues of approximately $32.8 billion and core EPS of about $7.45.

Zacks Rank & Stocks to Consider

Jabil currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.

Celestica (CLS - Free Report) is a better-ranked stock in the broader Zacks Computer and Technology sector, sporting a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for its current-year earnings has been revised 4.3% upward in the past 60 days. Celestica delivered a trailing four-quarter earnings surprise of 12.6%, on average. It has gained 31.7% in the past year.

Plexus (PLXS - Free Report) , carrying a Zacks Rank #2, is another solid pick for investors. The consensus estimate for current-year earnings has been revised upward by 7% in the past 60 days. Plexus delivered a trailing four-quarter earnings surprise of 8.6%, on average.

Sanmina Corporation (SANM - Free Report) also carries a Zacks Rank #2. The consensus mark for current-year earnings has been revised upward by 8.4% over the past 60 days. Sanmina pulled off a trailing four-quarter earnings surprise of 8%, on average. The stock has inched up 7.7% in the past year.
 


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