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Jabil (JBL) Up 6.7% Since Last Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for Jabil (JBL - Free Report) . Shares have added about 6.7% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Jabil due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Jabil Beats Q4 Earnings Estimates on Solid Revenues
Jabil reported healthy fourth-quarter fiscal 2022 results with year-over-year increase in revenue and earnings driven by diligent execution of operational plans.
Quarter Details
Non-GAAP earnings for the reported quarter were $329 million or $2.34 per share compared with $216 million or $1.44 per share in the year-ago quarter. On a GAAP basis, quarterly earnings increased to $315 million or $2.25 per share from $175 million or $1.16 per share in the prior year. The Zacks Consensus Estimate for earnings was pegged at $1.92 per share.
The bottom-line growth was primarily attributable to higher revenues, which increased to $9,030 million from $7,409 million a year ago, beating the consensus estimate of $8,393 million. The top line performance was driven by solid demand in key end markets.
In fiscal 2022, GAAP earnings were $996 million or $6.90 per share on revenues of $33,478 million compared with respective tallies of $696 million or $4.58 per share on revenues of $29,285 million in fiscal 2021.
By segments, Diversified Manufacturing Services (DMS) revenues in fiscal 2022 increased to $16.7 billion from $15.4 billion in fiscal 2021, while Electronics Manufacturing Services (EMS) revenues were up to $16.7 billion from $13.9 billion.
Cash Flow & Liquidity
In fiscal 2022, Jabil’s operating cash flow was $1,651 million compared with $1,433 million in fiscal 2021. As of Aug 31, 2022, the company had $1,478 million in cash and cash equivalents with $2,575 million of notes payable and long-term debt compared with respective tallies of $1,567 million and $2,878 million a year ago. The company has authorized a new share repurchase program worth $1 billion.
Guidance
For first-quarter fiscal 2023, Jabil expects revenues between $9 billion and $9.6 billion. Operating income is estimated in the $367-$427 million range. The company’s non-GAAP earnings per share are expected to be between $2.00 and $2.40.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision flatlined during the past month.
The consensus estimate has shifted 6.5% due to these changes.
VGM Scores
Currently, Jabil has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Jabil has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
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Jabil (JBL) Up 6.7% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Jabil (JBL - Free Report) . Shares have added about 6.7% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Jabil due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Jabil Beats Q4 Earnings Estimates on Solid Revenues
Jabil reported healthy fourth-quarter fiscal 2022 results with year-over-year increase in revenue and earnings driven by diligent execution of operational plans.
Quarter Details
Non-GAAP earnings for the reported quarter were $329 million or $2.34 per share compared with $216 million or $1.44 per share in the year-ago quarter. On a GAAP basis, quarterly earnings increased to $315 million or $2.25 per share from $175 million or $1.16 per share in the prior year. The Zacks Consensus Estimate for earnings was pegged at $1.92 per share.
The bottom-line growth was primarily attributable to higher revenues, which increased to $9,030 million from $7,409 million a year ago, beating the consensus estimate of $8,393 million. The top line performance was driven by solid demand in key end markets.
In fiscal 2022, GAAP earnings were $996 million or $6.90 per share on revenues of $33,478 million compared with respective tallies of $696 million or $4.58 per share on revenues of $29,285 million in fiscal 2021.
By segments, Diversified Manufacturing Services (DMS) revenues in fiscal 2022 increased to $16.7 billion from $15.4 billion in fiscal 2021, while Electronics Manufacturing Services (EMS) revenues were up to $16.7 billion from $13.9 billion.
Cash Flow & Liquidity
In fiscal 2022, Jabil’s operating cash flow was $1,651 million compared with $1,433 million in fiscal 2021. As of Aug 31, 2022, the company had $1,478 million in cash and cash equivalents with $2,575 million of notes payable and long-term debt compared with respective tallies of $1,567 million and $2,878 million a year ago. The company has authorized a new share repurchase program worth $1 billion.
Guidance
For first-quarter fiscal 2023, Jabil expects revenues between $9 billion and $9.6 billion. Operating income is estimated in the $367-$427 million range. The company’s non-GAAP earnings per share are expected to be between $2.00 and $2.40.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision flatlined during the past month.
The consensus estimate has shifted 6.5% due to these changes.
VGM Scores
Currently, Jabil has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Jabil has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.