We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Jabil Set to Report Q1 Earnings: Will Revenue Decline Impact Earnings?
Read MoreHide Full Article
Jabil Inc. (JBL - Free Report) is set to release first-quarter fiscal 2025 results on Dec. 18, before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 3.14%. It pulled off a trailing four-quarter earnings surprise of 2.37%, on average.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
The leading global supplier of electronic manufacturing services is likely to have witnessed a revenue contraction year over year in the first quarter of fiscal 2025. Soft demand trends in some end markets, stiff competition and macroeconomic challenges are likely to have impeded the top-line growth. A strong focus on increasing portfolio offerings with strategic acquisition and innovation is a positive.
Factors at Play in JBL’s Q1 Earnings
During the quarter, Jabil introduced J421E-S and J422-S servers powered by AMD 5th Generation EPYC and Intel Xeon 6 processors, respectively. The new servers offer top-notch scalability and efficiency, optimized for AI, fintech and cloud applications. Expansion of the server portfolio with innovative product launches is likely to have supported the top line during the quarter.
In the to-be-reported quarter, the company launched ID8 Global, a joint venture with Cyferd Inc., a pioneer in AI and data technologies. This collaborative endeavor intends to provide a cutting-edge, generative AI-driven software platform capable of autonomously transforming supply chain and procurement management globally.
In the to-be-reported quarter, Jabil closed the acquisition of Mikros Technologies LLC, a leading manufacturer of liquid cooling solutions for an undisclosed amount. With this strategic move, JBL is expanding its portfolio to match the growing demand for effective thermal-management systems across a wide range of applications. These initiatives will likely have a favorable impact on fiscal first-quarter earnings.
However, Jabil operates in a highly competitive environment, facing competition from both domestic and international electronic manufacturers, manufacturing service providers and design providers. The company has been witnessing a slowdown in multiple end markets including 5G wireless & cloud, digital print & retail and connected devices. Fluctuating demand patterns for electric vehicles are concerns. These factors are expected to have hindered the top-line growth during the quarter.
Key Developments in JBL’s Q1
Jabil announced a significant expansion of the production capabilities of its silicon photonics-based products in Ottawa, Canada, to support the escalating demands from hyperscalers, cloud and AI data centers. The company plans to introduce the additional capabilities at the end of fiscal 2024, focusing on advanced photonics packaging for new product introductions.
Overall Expectations From JBL
For the November quarter, the Zacks Consensus Estimate for revenues is pegged at $6.6 billion, which indicates a decline from the year-ago quarter’s reported number of $8.39 billion. The consensus estimate for earnings is pegged at $1.87 per share, implying a decrease from $2.60 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.
JBL’s 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 $1.87. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
JBL’s 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:
The Earnings ESP for Carnival (CCL - Free Report) is +7.33%. The company carries a Zacks Rank of 3. It is scheduled to report quarterly numbers on Dec. 20.
The Earnings ESP for Paychex (PAYX - Free Report) is +0.53% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Dec. 19.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Jabil Set to Report Q1 Earnings: Will Revenue Decline Impact Earnings?
Jabil Inc. (JBL - Free Report) is set to release first-quarter fiscal 2025 results on Dec. 18, before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 3.14%. It pulled off a trailing four-quarter earnings surprise of 2.37%, on average.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
The leading global supplier of electronic manufacturing services is likely to have witnessed a revenue contraction year over year in the first quarter of fiscal 2025. Soft demand trends in some end markets, stiff competition and macroeconomic challenges are likely to have impeded the top-line growth. A strong focus on increasing portfolio offerings with strategic acquisition and innovation is a positive.
Factors at Play in JBL’s Q1 Earnings
During the quarter, Jabil introduced J421E-S and J422-S servers powered by AMD 5th Generation EPYC and Intel Xeon 6 processors, respectively. The new servers offer top-notch scalability and efficiency, optimized for AI, fintech and cloud applications. Expansion of the server portfolio with innovative product launches is likely to have supported the top line during the quarter.
In the to-be-reported quarter, the company launched ID8 Global, a joint venture with Cyferd Inc., a pioneer in AI and data technologies. This collaborative endeavor intends to provide a cutting-edge, generative AI-driven software platform capable of autonomously transforming supply chain and procurement management globally.
In the to-be-reported quarter, Jabil closed the acquisition of Mikros Technologies LLC, a leading manufacturer of liquid cooling solutions for an undisclosed amount. With this strategic move, JBL is expanding its portfolio to match the growing demand for effective thermal-management systems across a wide range of applications. These initiatives will likely have a favorable impact on fiscal first-quarter earnings.
However, Jabil operates in a highly competitive environment, facing competition from both domestic and international electronic manufacturers, manufacturing service providers and design providers. The company has been witnessing a slowdown in multiple end markets including 5G wireless & cloud, digital print & retail and connected devices. Fluctuating demand patterns for electric vehicles are concerns. These factors are expected to have hindered the top-line growth during the quarter.
Key Developments in JBL’s Q1
Jabil announced a significant expansion of the production capabilities of its silicon photonics-based products in Ottawa, Canada, to support the escalating demands from hyperscalers, cloud and AI data centers. The company plans to introduce the additional capabilities at the end of fiscal 2024, focusing on advanced photonics packaging for new product introductions.
Overall Expectations From JBL
For the November quarter, the Zacks Consensus Estimate for revenues is pegged at $6.6 billion, which indicates a decline from the year-ago quarter’s reported number of $8.39 billion. The consensus estimate for earnings is pegged at $1.87 per share, implying a decrease from $2.60 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.
JBL’s 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 $1.87. 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
JBL’s 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:
Accenture (ACN - Free Report) is set to release its quarterly numbers on Dec. 19. It has an Earnings ESP of +1.45% 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) is +7.33%. The company carries a Zacks Rank of 3. It is scheduled to report quarterly numbers on Dec. 20.
The Earnings ESP for Paychex (PAYX - Free Report) is +0.53% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Dec. 19.