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Jabil Inc. (JBL - Free Report) reported impressive third-quarter fiscal 2023 results, with the top and the bottom line beating the respective Zacks Consensus Estimate. Solid execution in a dynamic operating environment, diverse end-market portfolio and healthy demand for the company’s unique engineering, manufacturing and supply-chain solution led to the year-over-year top-line expansion.
Net Income
Net income on a GAAP basis in the reported quarter was $233 million or $1.72 per share compared with $218 million or $1.52 per share in the year-ago quarter. Despite higher operating expenses, year-over-year net sales growth boosted the net income.
Non-GAAP net income in the reported quarter was $269 million or $1.99 per share compared with $246 million or $1.72 per share in the prior-year quarter. The bottom line surpassed the Zacks Consensus Estimate of $1.88.
Quarterly revenues increased to $8,475 million from $8,328 million reported in the year-ago quarter. The top line beat the consensus estimate of $8,165 million. Backed by a robust comprehensive product portfolio, a global connected factory network and positive demand trends led to the year-over-year improvement in net sales.
Net sales from Diversified Manufacturing Services rose 13% year over year. However, Electronics Manufacturing Services were down 8% compared to the prior-year quarter.
Other Details
Gross profit stood at $697 million compared with $619 million in the prior-year quarter. Non-GAAP operating income aggregated $404 million compared with $352 million in the year-ago period, primarily driven by top-line growth.
Cash Flow & Liquidity
For the first nine months of fiscal 2023, Jabil generated $1,048 million of net cash from operating activities compared with $745 million in the prior-year period. As of May 31, 2023, the company had $1,480 million in cash and cash equivalents, with $2,874 million of notes payable and long-term debt.
Outlook
For fourth-quarter fiscal 2023, revenues are expected to be in the range of $8.2-$8.8 billion. Non-GAAP operating income is projected in the $424-$484 million range. Management estimates non-GAAP earnings per share within the band of $2.14-$2.50.
The company anticipates that the healthy momentum will likely persist in the upcoming quarters, driven by its solid execution. For fiscal 2023, Jabil raised its revenue expectation to $34.7 billion from $34.5 billion, with $8.5 in core earnings per share.
Zacks Rank & Stocks to Consider
Jabil currently has a Zacks Rank #3 (Hold).
InterDigital, Inc. (IDCC - Free Report) , currently sporting a Zacks Rank #1 (Strong Buy), delivered an earnings surprise of 170.89%, on average, in the trailing four quarters. In the last reported quarter, it pulled off an earnings surprise of 579.03%. You can see the complete list of today’s Zacks #1 Rank stocks here.
It is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company engages in designing and developing a wide range of advanced technology solutions, which are used in digital cellular and wireless 3G, 4G and IEEE 802-related products and networks.
Akamai Technologies, Inc. (AKAM - Free Report) , carrying a Zacks Rank #2 (Buy) at present, delivered an earnings surprise of 4.86%, on average, in the trailing four quarters. In the last reported quarter, it pulled off an earnings surprise of 6.06%.
It is a global provider of content delivery networks and cloud infrastructure services. The company’s solutions accelerate and improve the delivery of content over the Internet, enabling faster response to requests for web pages, streaming of video & audio, business applications etc. Its offerings are intended to reduce the impact of traffic congestion, bandwidth constraints and capacity limitations on customers.
Viasat, Inc. (VSAT - Free Report) , currently sporting a Zacks Rank #1, delivered an earnings surprise of 7.98%, in the last reported quarter. Viasat designs, develops and markets advanced digital satellite telecommunications and other wireless networking and signal processing equipment. The company serves its high-bandwidth, high-performance communications solutions to the public, as well as the military, enterprises and government enterprises.
Viasat provides broadband services named ‘Exede’ in North America. This features the world's highest capacity satellite, ViaSat-1; satellite broadband networking systems, global mobile satellite services comprising high-speed in-flight Internet, as well as global tracking and messaging; and Wi-Fi and other hotspot support, operations and management systems.
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Jabil (JBL) Q3 Earnings Surpass Estimates, Revenues Rise Y/Y
Jabil Inc. (JBL - Free Report) reported impressive third-quarter fiscal 2023 results, with the top and the bottom line beating the respective Zacks Consensus Estimate. Solid execution in a dynamic operating environment, diverse end-market portfolio and healthy demand for the company’s unique engineering, manufacturing and supply-chain solution led to the year-over-year top-line expansion.
Net Income
Net income on a GAAP basis in the reported quarter was $233 million or $1.72 per share compared with $218 million or $1.52 per share in the year-ago quarter. Despite higher operating expenses, year-over-year net sales growth boosted the net income.
Non-GAAP net income in the reported quarter was $269 million or $1.99 per share compared with $246 million or $1.72 per share in the prior-year quarter. The bottom line surpassed the Zacks Consensus Estimate of $1.88.
Jabil, Inc. Price, Consensus and EPS Surprise
Jabil, Inc. price-consensus-eps-surprise-chart | Jabil, Inc. Quote
Revenues
Quarterly revenues increased to $8,475 million from $8,328 million reported in the year-ago quarter. The top line beat the consensus estimate of $8,165 million. Backed by a robust comprehensive product portfolio, a global connected factory network and positive demand trends led to the year-over-year improvement in net sales.
Net sales from Diversified Manufacturing Services rose 13% year over year. However, Electronics Manufacturing Services were down 8% compared to the prior-year quarter.
Other Details
Gross profit stood at $697 million compared with $619 million in the prior-year quarter. Non-GAAP operating income aggregated $404 million compared with $352 million in the year-ago period, primarily driven by top-line growth.
Cash Flow & Liquidity
For the first nine months of fiscal 2023, Jabil generated $1,048 million of net cash from operating activities compared with $745 million in the prior-year period. As of May 31, 2023, the company had $1,480 million in cash and cash equivalents, with $2,874 million of notes payable and long-term debt.
Outlook
For fourth-quarter fiscal 2023, revenues are expected to be in the range of $8.2-$8.8 billion. Non-GAAP operating income is projected in the $424-$484 million range. Management estimates non-GAAP earnings per share within the band of $2.14-$2.50.
The company anticipates that the healthy momentum will likely persist in the upcoming quarters, driven by its solid execution. For fiscal 2023, Jabil raised its revenue expectation to $34.7 billion from $34.5 billion, with $8.5 in core earnings per share.
Zacks Rank & Stocks to Consider
Jabil currently has a Zacks Rank #3 (Hold).
InterDigital, Inc. (IDCC - Free Report) , currently sporting a Zacks Rank #1 (Strong Buy), delivered an earnings surprise of 170.89%, on average, in the trailing four quarters. In the last reported quarter, it pulled off an earnings surprise of 579.03%. You can see the complete list of today’s Zacks #1 Rank stocks here.
It is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company engages in designing and developing a wide range of advanced technology solutions, which are used in digital cellular and wireless 3G, 4G and IEEE 802-related products and networks.
Akamai Technologies, Inc. (AKAM - Free Report) , carrying a Zacks Rank #2 (Buy) at present, delivered an earnings surprise of 4.86%, on average, in the trailing four quarters. In the last reported quarter, it pulled off an earnings surprise of 6.06%.
It is a global provider of content delivery networks and cloud infrastructure services. The company’s solutions accelerate and improve the delivery of content over the Internet, enabling faster response to requests for web pages, streaming of video & audio, business applications etc. Its offerings are intended to reduce the impact of traffic congestion, bandwidth constraints and capacity limitations on customers.
Viasat, Inc. (VSAT - Free Report) , currently sporting a Zacks Rank #1, delivered an earnings surprise of 7.98%, in the last reported quarter. Viasat designs, develops and markets advanced digital satellite telecommunications and other wireless networking and signal processing equipment. The company serves its high-bandwidth, high-performance communications solutions to the public, as well as the military, enterprises and government enterprises.
Viasat provides broadband services named ‘Exede’ in North America. This features the world's highest capacity satellite, ViaSat-1; satellite broadband networking systems, global mobile satellite services comprising high-speed in-flight Internet, as well as global tracking and messaging; and Wi-Fi and other hotspot support, operations and management systems.