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Will Healthy Top-Line Growth Aid Jabil's (JBL) Q2 Earnings?
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Jabil Inc. (JBL - Free Report) is scheduled to report second-quarter fiscal 2023 results on Mar 16, before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 4.52%. It pulled off a trailing four-quarter earnings surprise of 8.78%, on average.
The St. Petersburg, FL-based company is expected to have recorded year-over-year higher revenues. The upside is likely to be driven by the company’s strategy of innovation, strength and healthy demand for its 3D sensing solutions in the optical division and efficient operational execution.
Factors at Play
During the quarter, Jabil, in collaboration with arms OSRAM and Artilux, showcased a prototype of advance short-wavelength infrared (SWIR) 3D camera that can seamlessly operate in a different environment. These developments enhance the ambient light tolerance of 3D cameras up to a distance of 20 meters. With these features, the performance of the 3D camera operating at 1130 nm wavelength was substantially improved in terms of eye safety, object detection, path planning, localization and collision avoidance. This is likely to have translated into incremental revenues for the company in the quarter.
The industrial robot market is anticipated to expand at an 11% annual rate to reach $35 billion in 2029, and there is growing demand for automated functions across many sectors, including automotive, healthcare and others. Jabil, backed by its solid team of designers, engineers and researchers, is looking to address these demands through its innovative solutions. This is likely to have been reflected in the upcoming results.
For the to-be-reported quarter, The Zacks Consensus Estimate for revenues is pegged at $8,094 million, which indicates growth from the year-ago quarter’s reported figure of $7,553 million. The consensus estimate for earnings is pegged at $1.84 indicating an increase from $1.68 reported in year-ago quarter.
Earnings Whispers
Our proven model does not predict an earnings beat for Jabil for the fiscal second 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: Jabil's Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%, with both pegged at $1.84. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
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:
The Earnings ESP for Canadian Solar Inc. (CSIQ - Free Report) is +102.76% and carries a Zacks Rank of 2. The company is set to report quarterly numbers on Mar 21.
The Earnings ESP for Amadeus IT Group S.A (AMADY - Free Report) is +12.94% and it carries a Zacks Rank of 3. The company is set to report quarterly numbers on Mar 17.
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Will Healthy Top-Line Growth Aid Jabil's (JBL) Q2 Earnings?
Jabil Inc. (JBL - Free Report) is scheduled to report second-quarter fiscal 2023 results on Mar 16, before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 4.52%. It pulled off a trailing four-quarter earnings surprise of 8.78%, on average.
The St. Petersburg, FL-based company is expected to have recorded year-over-year higher revenues. The upside is likely to be driven by the company’s strategy of innovation, strength and healthy demand for its 3D sensing solutions in the optical division and efficient operational execution.
Factors at Play
During the quarter, Jabil, in collaboration with arms OSRAM and Artilux, showcased a prototype of advance short-wavelength infrared (SWIR) 3D camera that can seamlessly operate in a different environment. These developments enhance the ambient light tolerance of 3D cameras up to a distance of 20 meters. With these features, the performance of the 3D camera operating at 1130 nm wavelength was substantially improved in terms of eye safety, object detection, path planning, localization and collision avoidance. This is likely to have translated into incremental revenues for the company in the quarter.
The industrial robot market is anticipated to expand at an 11% annual rate to reach $35 billion in 2029, and there is growing demand for automated functions across many sectors, including automotive, healthcare and others. Jabil, backed by its solid team of designers, engineers and researchers, is looking to address these demands through its innovative solutions. This is likely to have been reflected in the upcoming results.
For the to-be-reported quarter, The Zacks Consensus Estimate for revenues is pegged at $8,094 million, which indicates growth from the year-ago quarter’s reported figure of $7,553 million. The consensus estimate for earnings is pegged at $1.84 indicating an increase from $1.68 reported in year-ago quarter.
Earnings Whispers
Our proven model does not predict an earnings beat for Jabil for the fiscal second 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: Jabil's Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%, with both pegged at $1.84. 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-eps-surprise | Jabil, Inc. Quote
Zacks Rank: Jabil currently 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 an earnings beat this season:
Neogen Corporation (NEOG - Free Report) is set to release quarterly numbers on Mar 23. It has an Earnings ESP of +22.73% and carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Earnings ESP for Canadian Solar Inc. (CSIQ - Free Report) is +102.76% and carries a Zacks Rank of 2. The company is set to report quarterly numbers on Mar 21.
The Earnings ESP for Amadeus IT Group S.A (AMADY - Free Report) is +12.94% and it carries a Zacks Rank of 3. The company is set to report quarterly numbers on Mar 17.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.