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Will Healthy Top-Line Growth Buoy Jabil (JBL) Q1 Earnings?

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Jabil Inc. (JBL - Free Report) is scheduled to report first-quarter fiscal 2023 (ended Nov 30, 2022) results on Dec 15, before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 9.4%. It pulled off a trailing four-quarter earnings surprise of 9.3%, on average.

The St. Petersburg, FL-based company is expected to have recorded year-over-year higher revenues, driven by solid demand in key end markets, diligent execution of operational plans and skillful management of supply chain dynamics.

Factors at Play

During the quarter, Jabil announced the production rollout of its Badger Technologies multipurpose autonomous robots that were deployed across the retail chain outlets of Busy Beaver Building Centers to automate operations and improve shopping experiences. While automating inventory shelf scans significantly reduces product and price checks from 80 hours weekly to 40 minutes daily, the robots help keep shelves of the home improvement centers fully stocked with the right mix of products at the right prices without overburdening employees. Such innovative products are likely to have aided its quarterly performance.

In the fiscal first quarter, Jabil collaborated with BRdata Software Solutions to collate actionable data and key analytics for grocers in order to improve store profitability, operational efficiencies and shopping experiences. Data pertaining to real-time inventory, pricing and shopping trends are collected by Badger Technologies’ multipurpose autonomous robots, which are then analyzed by BRdata’s cloud-based retail software to identify discrepancies and resolve on-shelf product and pricing problems with increased agility and accuracy. This is likely to have aided top-line growth in the quarter.

During the to-be-reported quarter, Jabil announced the availability and customer testing of its CFP2 DCO ECO Coherent Transceiver, which is designed and developed by its photonics business unit. The module is based on Nokia’s CSTAR200+ silicon photonics optical engine and is designed to deliver the best-in-class optical performance while adhering to current communications standards requirements. This is likely to have generated incremental revenues for Jabil in the quarter.

For the to-be-reported quarter, management expects total revenues to be between $9 billion and $9.6 billion. The Zacks Consensus Estimate for revenues is pegged at $9,281 million, which indicates growth from the year-ago quarter’s reported figure of $8,567 million. The consensus estimate for earnings is pegged at $2.21. It reported adjusted earnings of $1.92 per share.

Earnings Whispers

Our proven model does not predict an earnings beat for Jabil for the fiscal first quarter. 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%, with both pegged at $2.21. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Jabil, Inc. Price and EPS Surprise

Jabil, Inc. Price and EPS Surprise

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

Zacks Rank: Jabil has a Zacks Rank #3.

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 earnings beat this season:

Carnival Corporation & plc (CCL - Free Report) is set to release quarterly numbers on Dec 19. It has an Earnings ESP of +3.90% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Earnings ESP for Calavo Growers, Inc. (CVGW - Free Report) is +9.59% and it carries a Zacks Rank of 3. The company is set to report quarterly numbers on Dec 20.

The Earnings ESP for Neogen Corporation (NEOG - Free Report) is +366.67% and it carries a Zacks Rank of 2. The company is scheduled to report quarterly numbers on Dec 20.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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