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Jabil (JBL) Q1 Earnings and Revenues Surpass Estimates
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Jabil Inc. (JBL - Free Report) reported better-than-expected fiscal first-quarter 2018 results wherein both the top and the bottom line surpassed the Zacks Consensus Estimate and recorded year-over-year improvement.
The company reported earnings of 80 cents per share, which beat the Zacks Consensus Estimate of 78 cents and were much higher than the prior-year quarter’s figure of 69 cents.
Revenues increased 9.4% year over year to $5.586 billion and outpaced the Zacks Consensus Estimate of $5.499 billion as well.
Electronics Manufacturing Services (EMS) revenues were up 6% year over year which translates to nearly $2.9 billion (representing 51% of revenues).
Diversified Manufacturing Services (DMS) revenues increased 13% year over year which translates to approximately $2.7 billion (representing 49% of revenues).
Notably, shares of Jabil have gained 15.9% year to date, outperforming the industry’s rally of 11.9%.
Operating Details
Gross margin contracted nearly 100 basis points (bps) on a year-over-year basis to 8.4%.
The company’s operating income decreased 12% year on year to $145.8 million.
The company’s core operating income increased to $227.2 million from $209.5 million in the year-ago quarter. However, core operating margin remained unchanged at 4.1%
Balance Sheet & Cash Flow
The company exited the quarter with cash and cash equivalents of $746.3 million, compared with $1.19 billion as of Aug 31, 2017.
The company used $53.6 million of cash for operating activities in the first quarter of fiscal 2018.
Guidance
For the second quarter, Jabil expects total revenues to increase 10% (at mid-point) year over year in the range of $4.75–$5.05 billion. Core operating income is estimated in the range of $160–$200 million.
DMS revenues are forecast to grow 25% year over year.
EMS revenues are anticipated to increase 1% on a year-over-year basis.
The company is expected to post core earnings in the range of 50–74 cents per share on a non-GAAP basis.
The company expects core earnings per share of $2.6 for fiscal 2018.
Jabil Circuit, Inc. Price, Consensus and EPS Surprise
Long-term earnings growth rate for IPG Photonics, NetApp and NVIDIA is projected to be 12%, 11.3% and 10.3%, respectively.
Investor Alert: Breakthroughs Pending
A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline.
Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now.
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Jabil (JBL) Q1 Earnings and Revenues Surpass Estimates
Jabil Inc. (JBL - Free Report) reported better-than-expected fiscal first-quarter 2018 results wherein both the top and the bottom line surpassed the Zacks Consensus Estimate and recorded year-over-year improvement.
The company reported earnings of 80 cents per share, which beat the Zacks Consensus Estimate of 78 cents and were much higher than the prior-year quarter’s figure of 69 cents.
Revenues increased 9.4% year over year to $5.586 billion and outpaced the Zacks Consensus Estimate of $5.499 billion as well.
Electronics Manufacturing Services (EMS) revenues were up 6% year over year which translates to nearly $2.9 billion (representing 51% of revenues).
Diversified Manufacturing Services (DMS) revenues increased 13% year over year which translates to approximately $2.7 billion (representing 49% of revenues).
Notably, shares of Jabil have gained 15.9% year to date, outperforming the industry’s rally of 11.9%.
Operating Details
Gross margin contracted nearly 100 basis points (bps) on a year-over-year basis to 8.4%.
The company’s operating income decreased 12% year on year to $145.8 million.
The company’s core operating income increased to $227.2 million from $209.5 million in the year-ago quarter. However, core operating margin remained unchanged at 4.1%
Balance Sheet & Cash Flow
The company exited the quarter with cash and cash equivalents of $746.3 million, compared with $1.19 billion as of Aug 31, 2017.
The company used $53.6 million of cash for operating activities in the first quarter of fiscal 2018.
Guidance
For the second quarter, Jabil expects total revenues to increase 10% (at mid-point) year over year in the range of $4.75–$5.05 billion. Core operating income is estimated in the range of $160–$200 million.
DMS revenues are forecast to grow 25% year over year.
EMS revenues are anticipated to increase 1% on a year-over-year basis.
The company is expected to post core earnings in the range of 50–74 cents per share on a non-GAAP basis.
The company expects core earnings per share of $2.6 for fiscal 2018.
Jabil Circuit, Inc. Price, Consensus and EPS Surprise
Jabil Circuit, Inc. Price, Consensus and EPS Surprise | Jabil Circuit, Inc. Quote
Zacks Rank & Key Picks
Jabil carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the broader technology sector include IPG Photonics Corporation (IPGP - Free Report) , NetApp Inc. (NTAP - Free Report) and NVIDIA Corporation (NVDA - Free Report) , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
Long-term earnings growth rate for IPG Photonics, NetApp and NVIDIA is projected to be 12%, 11.3% and 10.3%, respectively.
Investor Alert: Breakthroughs Pending
A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline.
Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now.
Click here to see them >>