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Jabil Inc. (JBL - Free Report) reported mixed second-quarter fiscal 2024 results, with the bottom line beating the Zacks Consensus Estimate but the top line missing the same. The company reported a top-line contraction year over year, owing to soft demand trends in several end markets.
Net Income
Net income on a GAAP basis in the quarter was $927 million or $7.31 per share compared with $207 million or $1.52 per share in the prior-year quarter. Despite top line decline, gain from the divestiture of Mobility business supported the net income.
Non-GAAP net income in the reported quarter was $213 million or $1.68 per share compared with $256 million or $1.88 per share in the prior-year quarter. The bottom line surpassed the Zacks Consensus Estimate of $1.65.
Net sales during the quarter decreased to $6.8 billion from $8.13 billion reported in the year-ago quarter. The top line missed the consensus estimate of $6.9 billion. Soft demand trends in multiple end markets, including industrial & semi-cap, digital retail & print, networking & storage and connected devices, affected the top line.
Net sales from Diversified Manufacturing Services declined 16% year over year. Electronics Manufacturing Services were down 18% compared to the prior-year quarter.
Other Details
Gross profit was $630 million compared with $661 million in the year ago quarter. Non-GAAP operating income aggregated $338 million compared with $391 million in the year-ago period.
Cash Flow & Liquidity
In the first six months of fiscal 2024, Jabil generated $666 million of net cash from operating activities compared with $580 million in the prior-year period. As of Feb 29, 2024, the company had $2.56 billion in cash and cash equivalents, with $2.87 billion of notes payable and long-term debt.
Outlook
For third-quarter fiscal 2024, revenues are expected to be in the range of $6.2-$6.8 billion. Non-GAAP operating income is projected in the $325-$385 million range. Management estimates non-GAAP earnings per share within the band of $1.65-$2.05.
For fiscal 2024, Jabil estimated net revenues to be $28.5 billion, down from the previous estimation of $31 billion. Core earnings per share is expected at $8.40, down from the prior expectation of around $9. The core operating margin is expected at about 5.6%.
Zacks Rank & Stocks to Consider
Jabil currently has a Zacks Rank #3 (Hold).
NVIDIA Corporation (NVDA - Free Report) , currently sporting a Zacks Rank #1 (Strong Buy), delivered a trailing four-quarter average earnings surprise of 20.18%. In the last reported quarter, it delivered an earnings surprise of 13.41%. You can see the complete list of today’s Zacks #1 Rank stocks here.
NVIDIA is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit. Over the years, the company’s focus evolved from PC graphics to AI-based solutions that support high-performance computing, gaming and virtual reality platforms.
InterDigital, Inc. (IDCC - Free Report) , carrying a Zacks Rank #2 (Buy) at present, delivered a trailing four-quarter average earnings surprise of 170.50%. In the last reported quarter, it delivered an earnings surprise of 16.53%.
IDCC 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 as well as wireless 3G, 4G and IEEE 802-related products and networks.
Pinterest (PINS - Free Report) , carrying a Zacks Rank #2 at present, delivered a trailing four-quarter average earnings surprise of 37.42%. In the last reported quarter, it delivered an earnings surprise of 3.92%.
Pinterest is increasingly establishing a unique value proposition to advertisers that could provide a competitive advantage in the long haul. Through various innovations, it continues to dramatically improve the advertising platform, which presently appears to be one of the best ad platforms for consumer discretionary brands looking for new ways to reach customers and stretch smaller ad budgets.
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Jabil (JBL) Q2 Earnings Beat Estimates Despite Lower Revenues
Jabil Inc. (JBL - Free Report) reported mixed second-quarter fiscal 2024 results, with the bottom line beating the Zacks Consensus Estimate but the top line missing the same. The company reported a top-line contraction year over year, owing to soft demand trends in several end markets.
Net Income
Net income on a GAAP basis in the quarter was $927 million or $7.31 per share compared with $207 million or $1.52 per share in the prior-year quarter. Despite top line decline, gain from the divestiture of Mobility business supported the net income.
Non-GAAP net income in the reported quarter was $213 million or $1.68 per share compared with $256 million or $1.88 per share in the prior-year quarter. The bottom line surpassed the Zacks Consensus Estimate of $1.65.
Jabil, Inc. Price, Consensus and EPS Surprise
Jabil, Inc. price-consensus-eps-surprise-chart | Jabil, Inc. Quote
Revenues
Net sales during the quarter decreased to $6.8 billion from $8.13 billion reported in the year-ago quarter. The top line missed the consensus estimate of $6.9 billion. Soft demand trends in multiple end markets, including industrial & semi-cap, digital retail & print, networking & storage and connected devices, affected the top line.
Net sales from Diversified Manufacturing Services declined 16% year over year. Electronics Manufacturing Services were down 18% compared to the prior-year quarter.
Other Details
Gross profit was $630 million compared with $661 million in the year ago quarter. Non-GAAP operating income aggregated $338 million compared with $391 million in the year-ago period.
Cash Flow & Liquidity
In the first six months of fiscal 2024, Jabil generated $666 million of net cash from operating activities compared with $580 million in the prior-year period. As of Feb 29, 2024, the company had $2.56 billion in cash and cash equivalents, with $2.87 billion of notes payable and long-term debt.
Outlook
For third-quarter fiscal 2024, revenues are expected to be in the range of $6.2-$6.8 billion. Non-GAAP operating income is projected in the $325-$385 million range. Management estimates non-GAAP earnings per share within the band of $1.65-$2.05.
For fiscal 2024, Jabil estimated net revenues to be $28.5 billion, down from the previous estimation of $31 billion. Core earnings per share is expected at $8.40, down from the prior expectation of around $9. The core operating margin is expected at about 5.6%.
Zacks Rank & Stocks to Consider
Jabil currently has a Zacks Rank #3 (Hold).
NVIDIA Corporation (NVDA - Free Report) , currently sporting a Zacks Rank #1 (Strong Buy), delivered a trailing four-quarter average earnings surprise of 20.18%. In the last reported quarter, it delivered an earnings surprise of 13.41%. You can see the complete list of today’s Zacks #1 Rank stocks here.
NVIDIA is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit. Over the years, the company’s focus evolved from PC graphics to AI-based solutions that support high-performance computing, gaming and virtual reality platforms.
InterDigital, Inc. (IDCC - Free Report) , carrying a Zacks Rank #2 (Buy) at present, delivered a trailing four-quarter average earnings surprise of 170.50%. In the last reported quarter, it delivered an earnings surprise of 16.53%.
IDCC 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 as well as wireless 3G, 4G and IEEE 802-related products and networks.
Pinterest (PINS - Free Report) , carrying a Zacks Rank #2 at present, delivered a trailing four-quarter average earnings surprise of 37.42%. In the last reported quarter, it delivered an earnings surprise of 3.92%.
Pinterest is increasingly establishing a unique value proposition to advertisers that could provide a competitive advantage in the long haul. Through various innovations, it continues to dramatically improve the advertising platform, which presently appears to be one of the best ad platforms for consumer discretionary brands looking for new ways to reach customers and stretch smaller ad budgets.