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Jabil (JBL) Q2 Earnings Beat Estimates on Top-Line Growth
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Jabil Inc. (JBL - Free Report) reported solid second-quarter fiscal 2023 results, beating the bottom- and top-line estimates. Backed by a robust portfolio, the company witnessed solid momentum in automotive, healthcare and industrial businesses, which led to top-line expansion year over year.
Net Income
GAAP net income in the reported quarter was $207 million or an income of $1.52 per share compared with $222 million or $1.51 per share in the year-ago quarter. Despite top-line improvement, higher cost of revenues and interest expenses hurt the second quarter earnings.
Non-GAAP net income in the reported quarter was $256 million or $1.88 per share compared with $246 million or $1.68 per share in the prior-year quarter. The bottom line surpassed the Zacks Consensus Estimate by 4 cents.
Revenues rose to $8,134 million from $7,553 million in the prior-year quarter. The top line beat the consensus estimate of $8,094 million. A diversified portfolio, favorable product mix and healthy demand trends ensured 8% revenue growth year over year.
Segment wise, Diversified Manufacturing Services (DMS) revenues increased 8% year over year while revenues from Electronics Manufacturing Services (EMS) were up 7%, with both segments contributing about 50% to the total revenues.
Other Details
Gross profit rose to $661 million from $609 million in the prior-year quarter. Non-GAAP operating income aggregated $391 million compared with $344 million in the prior-year period, primarily due to top-line improvement.
Cash Flow & Liquidity
For the first six months of fiscal 2023, Jabil’s generated $580 million net cash from operating activities compared with $200 million in the prior-year period. As of Feb 28, 2023, the company had $1,200 million in cash and cash equivalents with $2,577 million of notes payable and long-term debt.
Outlook
For third-quarter fiscal 2023, Jabil expects revenues to be in the range of $7.9 billion and $8.5 billion. Non-GAAP operating income is estimated in the $363-$423 million range. Management anticipates non-GAAP earnings per share within the band of $1.70-$2.10.
Management expects the positive momentum to continue in the forthcoming quarters, driven by healthy demand trends. The company will remain committed to enhancing its operational excellence and delivering value to customers.
Arista Networks, Inc. (ANET - Free Report) , sporting a Zacks Rank #1, delivered an earnings surprise of 14.17%, on average, in the trailing four quarters. Earnings estimates for ANET for the current year stand at $5.79 per share.
Arista is engaged in providing cloud networking solutions for data centers and cloud computing environments. The company offers 10/25/40/50/100 Gigabit Ethernet switches and routers optimized for next-generation data center networks.
Splunk Inc. , carrying a Zacks Rank #2 (Buy), delivered an earnings surprise of 131.1%, on average, in the trailing four quarters. It benefits from a rapidly expanding user base, high demand for cloud solutions, increasing renewable subscription revenues and a strong partner base.
Splunk provides software solutions that enable enterprises to gain real-time operational intelligence by harnessing the value of their data. The company’s offerings enable users to investigate, monitor, analyze and act on machine data and big data, irrespective of format or source and help in operational decision-making.
InterDigital, Inc. (IDCC - Free Report) , carrying a Zacks Rank 2, delivered an earnings surprise of 40.3% on average in the trailing four quarters and delivered an earnings surprise of 17.39% in the last reported quarter.
InterDigital is a pioneer in advanced mobile technologies that enables wireless communications and capabilities. The company designs and develops a wide range of advanced technology solutions, which are used in digital cellular and wireless 3G, 4G and IEEE 802-related products and networks.
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Jabil (JBL) Q2 Earnings Beat Estimates on Top-Line Growth
Jabil Inc. (JBL - Free Report) reported solid second-quarter fiscal 2023 results, beating the bottom- and top-line estimates. Backed by a robust portfolio, the company witnessed solid momentum in automotive, healthcare and industrial businesses, which led to top-line expansion year over year.
Net Income
GAAP net income in the reported quarter was $207 million or an income of $1.52 per share compared with $222 million or $1.51 per share in the year-ago quarter. Despite top-line improvement, higher cost of revenues and interest expenses hurt the second quarter earnings.
Non-GAAP net income in the reported quarter was $256 million or $1.88 per share compared with $246 million or $1.68 per share in the prior-year quarter. The bottom line surpassed the Zacks Consensus Estimate by 4 cents.
Jabil, Inc. Price, Consensus and EPS Surprise
Jabil, Inc. price-consensus-eps-surprise-chart | Jabil, Inc. Quote
Revenues
Revenues rose to $8,134 million from $7,553 million in the prior-year quarter. The top line beat the consensus estimate of $8,094 million. A diversified portfolio, favorable product mix and healthy demand trends ensured 8% revenue growth year over year.
Segment wise, Diversified Manufacturing Services (DMS) revenues increased 8% year over year while revenues from Electronics Manufacturing Services (EMS) were up 7%, with both segments contributing about 50% to the total revenues.
Other Details
Gross profit rose to $661 million from $609 million in the prior-year quarter. Non-GAAP operating income aggregated $391 million compared with $344 million in the prior-year period, primarily due to top-line improvement.
Cash Flow & Liquidity
For the first six months of fiscal 2023, Jabil’s generated $580 million net cash from operating activities compared with $200 million in the prior-year period. As of Feb 28, 2023, the company had $1,200 million in cash and cash equivalents with $2,577 million of notes payable and long-term debt.
Outlook
For third-quarter fiscal 2023, Jabil expects revenues to be in the range of $7.9 billion and $8.5 billion. Non-GAAP operating income is estimated in the $363-$423 million range. Management anticipates non-GAAP earnings per share within the band of $1.70-$2.10.
Management expects the positive momentum to continue in the forthcoming quarters, driven by healthy demand trends. The company will remain committed to enhancing its operational excellence and delivering value to customers.
Zacks Rank & Other Stocks to Consider
Jabil currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Arista Networks, Inc. (ANET - Free Report) , sporting a Zacks Rank #1, delivered an earnings surprise of 14.17%, on average, in the trailing four quarters. Earnings estimates for ANET for the current year stand at $5.79 per share.
Arista is engaged in providing cloud networking solutions for data centers and cloud computing environments. The company offers 10/25/40/50/100 Gigabit Ethernet switches and routers optimized for next-generation data center networks.
Splunk Inc. , carrying a Zacks Rank #2 (Buy), delivered an earnings surprise of 131.1%, on average, in the trailing four quarters. It benefits from a rapidly expanding user base, high demand for cloud solutions, increasing renewable subscription revenues and a strong partner base.
Splunk provides software solutions that enable enterprises to gain real-time operational intelligence by harnessing the value of their data. The company’s offerings enable users to investigate, monitor, analyze and act on machine data and big data, irrespective of format or source and help in operational decision-making.
InterDigital, Inc. (IDCC - Free Report) , carrying a Zacks Rank 2, delivered an earnings surprise of 40.3% on average in the trailing four quarters and delivered an earnings surprise of 17.39% in the last reported quarter.
InterDigital is a pioneer in advanced mobile technologies that enables wireless communications and capabilities. The company designs and develops a wide range of advanced technology solutions, which are used in digital cellular and wireless 3G, 4G and IEEE 802-related products and networks.