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JBL Set to Report Q3 Results: Will Revenue Growth Boost Earnings?

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Key Takeaways

  • JBL is expected to report year-over-year revenue growth in Q3 FY25, driven by strong demand.
  • New product launches in AI-driven photonics and robotics may boost JBL's top-line performance.
  • JBL's strong focus on improving free cash flow supports its growth and operational flexibility.

Jabil Inc. (JBL - Free Report) is set to release third-quarter fiscal 2025 results on June 17, before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 7.18%. It pulled off a trailing four-quarter earnings surprise of 4.86%, on average.

The leading global supplier of electronic manufacturing services is likely to witness a revenue expansion year over year in the third quarter of fiscal 2025. Healthy demand in cloud and data center infrastructure, capital equipment and digital commerce market will likely drive the top line. A strong focus on improving free cash flow is a positive.

Factors at Play for JBL

In the to-be-reported quarter, Jabil formed a strategic collaboration with AVL, an industry-leading engineering services provider. Jabil aims to combine its robust expertise in industrialization, manufacturing and supply chain solutions with AVL’s expertise in product design, software, simulation, and device testing. The partnership will focus on developing next-generation vehicle technology such as powertrain and charging technology, sensor-based driver assistance systems, and various other on-board compute and control products. Such an initiative is expected to have boosted Jabil’s commercial prospects in the automotive and transportation industry.

During the quarter, JBL expanded its photonics product portfolio with the launch of new transceivers. With their capability to transfer data at speeds of up to 1.6 Terabits per second, these cutting-edge solutions are tailored to support the rising demands of artificial intelligence/machine learning workloads, high-performance computing, cloud infrastructure, and data center interconnects.

In the quarter under review, Jabil’s division, Badger Technologies, introduced the Digital Teammate solution platform, powered by Badger’s multipurpose, autonomous robots. The platform is designed to enhance employee productivity and inventory management capabilities utilizing AI, mobile data and analytics, and computer vision. Such innovation initiatives are expected to have boosted Jabil’s top line.

The Zacks Consensus Estimate for the Regulated Industries segment is pegged at $2.98 billion. Revenues from the Intelligent Infrastructure segment are pegged at $2.79 billion, while net sales from Connected Living and Digital Commerce are projected to reach $1.19 billion.

For the May quarter, the Zacks Consensus Estimate for revenues is pegged at $6.98 billion, which indicates an increase from the year-ago quarter’s tally of $6.77 billion. The consensus estimate for earnings is pegged at $2.28, suggesting a increase from $1.89 reported in the prior-year quarter.

Earnings Whispers for JBL

Our proven model doesn’t conclusively predict an earnings beat for Jabil this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.

Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. (See the Zacks Earnings Calendar to stay ahead of market-making news.)

Jabil, Inc. Price and EPS Surprise

Jabil, Inc. Price and EPS Surprise

Jabil, Inc. price-eps-surprise | Jabil, Inc. Quote

Zacks Rank: Jabil currently has a Zacks Rank #4 (Sell).

Stocks to Consider

Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:

Accenture (ACN - Free Report) is set to release its quarterly numbers on June 20. It has an Earnings ESP of +1.22% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Earnings ESP for Carnival (CCL - Free Report) stands at +4.94%. The company carries a Zacks Rank of 2. It is scheduled to report quarterly numbers on June 24.

The Earnings ESP for Progress Software (PRGS - Free Report) stands at +0.46%, and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on June 24.

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