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Jabil Q2 Earnings Surpass Estimates on Solid Demand, Guidance Raised
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Jabil, Inc. (JBL - Free Report) reported strong second-quarter fiscal 2025 results, with both bottom and top lines surpassing the Zacks Consensus Estimate. However, the company reported a top-line decline year over year, owing to weakness in some verticals. Healthy traction in the data center infrastructure, cloud and digital commerce end-markets is a tailwind.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
JBL’s Net Income
Net income on a GAAP basis in the quarter was $117 million or $1.06 per share compared with $927 million or $7.31 in the prior-year quarter. The gain from the mobility business divestiture boosted the net income in the prior-year quarter.
Non-GAAP net income in the reported quarter was $215 million or $1.94 per share compared with $213 million or $1.68 in the prior-year quarter. The bottom line surpassed the Zacks Consensus Estimate of $1.81.
Net sales during the quarter decreased to $6.72 billion from $6.76 billion reported in the year-ago quarter. However, the top line beat the consensus estimate of $6.4 billion. Demand softness in several end markets impeded the top line.
In the fiscal second quarter, the Regulated Industries segment generated $2.7 billion in revenues, down 8% year over year. The segment contributed 41% in revenues. The metric declined in this segment, owing to weakness in renewable energy and EV verticals.
Net sales from the Intelligent Infrastructure segment generated $2.6 billion in revenues. The segment contributed 39% of total revenues, up 18% year over year. The Healthy demand in the Capital Equipment, AI-related Cloud and Data Center Infrastructure verticals supported the net sales.
About 20% of the total revenues came from the Connected Living & Digital Commerce segment. Net sales declined to $1.3 billion, down 13% year over year from this segment, owing to mobility divestiture and soft demand for consumer driven connected living products. Strong growth in digital commerce and warehouse automation markets partially reversed this trend.
JBL’s Other Details
Gross profit was $576 million compared with $630 million in the year-ago quarter. Non-GAAP operating income aggregated $334 million, down from $338 million in the year-ago period. Non-GAAP operating margin was 5% matching the year-ago quarter’s figure.
JBL’s Cash Flow & Liquidity
In second-quarter fiscal 2025, Jabil generated $334 million of net cash from operating activities compared with $218 million in the previous year’s quarter. As of Feb. 28, 2025, the company had $1.59 billion in cash and cash equivalents, with $2.88 billion of notes payable and long-term debt.
JBL’s Guidance Up
For the third quarter of fiscal 2025, revenues are expected to be in the range of $6.7-$7.3 billion. Non-GAAP operating income is projected in the $348-$408 million range. Management estimates non-GAAP earnings per share within the band of $2.08-$2.48.
Management expects cloud and data center infrastructure, capital equipment and digital commerce market will be the major growth drivers in 2025. For fiscal 2025, revenues are now projected at $27.9 billion, up from the prior estimation of $27.3 billion. Non-GAAP earnings per share are expected at $8.95, up from $8.75 previously estimated. The company is expected to generate more than $1.2 billion in adjusted free cash flow.
In the trailing four quarters, it delivered an earnings surprise of 158.41%. It is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company designs and develops a wide range of advanced technology solutions used in digital cellular, wireless 3G, 4G and IEEE 802-related products and networks.
Celestica Inc. (CLS - Free Report) carries a Zacks Rank #2 at present. The company provides competitive manufacturing technology and service solutions for printed circuit assembly and system assembly, as well as post-manufacturing support to many of the world's leading original equipment manufacturers.
United States Cellular Corporation (USM - Free Report) sports a Zacks Rank of 1 at present. In the last reported quarter, it delivered an earnings surprise of 150%.
U.S. Cellular has taken concrete steps to accelerate subscriber additions and improve churn management. The company aims to offer the best wireless experience to customers by providing superior quality network and national coverage. It is well-positioned to support the investment required for network enhancements, including the deployment of 5G technology.
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Jabil Q2 Earnings Surpass Estimates on Solid Demand, Guidance Raised
Jabil, Inc. (JBL - Free Report) reported strong second-quarter fiscal 2025 results, with both bottom and top lines surpassing the Zacks Consensus Estimate. However, the company reported a top-line decline year over year, owing to weakness in some verticals. Healthy traction in the data center infrastructure, cloud and digital commerce end-markets is a tailwind.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
JBL’s Net Income
Net income on a GAAP basis in the quarter was $117 million or $1.06 per share compared with $927 million or $7.31 in the prior-year quarter. The gain from the mobility business divestiture boosted the net income in the prior-year quarter.
Non-GAAP net income in the reported quarter was $215 million or $1.94 per share compared with $213 million or $1.68 in the prior-year quarter. The bottom line surpassed the Zacks Consensus Estimate of $1.81.
Jabil, Inc. Price, Consensus and EPS Surprise
Jabil, Inc. price-consensus-eps-surprise-chart | Jabil, Inc. Quote
JBL’s Revenues
Net sales during the quarter decreased to $6.72 billion from $6.76 billion reported in the year-ago quarter. However, the top line beat the consensus estimate of $6.4 billion. Demand softness in several end markets impeded the top line.
In the fiscal second quarter, the Regulated Industries segment generated $2.7 billion in revenues, down 8% year over year. The segment contributed 41% in revenues. The metric declined in this segment, owing to weakness in renewable energy and EV verticals.
Net sales from the Intelligent Infrastructure segment generated $2.6 billion in revenues. The segment contributed 39% of total revenues, up 18% year over year. The Healthy demand in the Capital Equipment, AI-related Cloud and Data Center Infrastructure verticals supported the net sales.
About 20% of the total revenues came from the Connected Living & Digital Commerce segment. Net sales declined to $1.3 billion, down 13% year over year from this segment, owing to mobility divestiture and soft demand for consumer driven connected living products. Strong growth in digital commerce and warehouse automation markets partially reversed this trend.
JBL’s Other Details
Gross profit was $576 million compared with $630 million in the year-ago quarter. Non-GAAP operating income aggregated $334 million, down from $338 million in the year-ago period. Non-GAAP operating margin was 5% matching the year-ago quarter’s figure.
JBL’s Cash Flow & Liquidity
In second-quarter fiscal 2025, Jabil generated $334 million of net cash from operating activities compared with $218 million in the previous year’s quarter. As of Feb. 28, 2025, the company had $1.59 billion in cash and cash equivalents, with $2.88 billion of notes payable and long-term debt.
JBL’s Guidance Up
For the third quarter of fiscal 2025, revenues are expected to be in the range of $6.7-$7.3 billion. Non-GAAP operating income is projected in the $348-$408 million range. Management estimates non-GAAP earnings per share within the band of $2.08-$2.48.
Management expects cloud and data center infrastructure, capital equipment and digital commerce market will be the major growth drivers in 2025. For fiscal 2025, revenues are now projected at $27.9 billion, up from the prior estimation of $27.3 billion. Non-GAAP earnings per share are expected at $8.95, up from $8.75 previously estimated. The company is expected to generate more than $1.2 billion in adjusted free cash flow.
JBL’s Zacks Rank
JBL currently carries a Zacks Rank #2 (Buy).
Other Stocks to Consider
InterDigital (IDCC - Free Report) sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the trailing four quarters, it delivered an earnings surprise of 158.41%. It is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company designs and develops a wide range of advanced technology solutions used in digital cellular, wireless 3G, 4G and IEEE 802-related products and networks.
Celestica Inc. (CLS - Free Report) carries a Zacks Rank #2 at present. The company provides competitive manufacturing technology and service solutions for printed circuit assembly and system assembly, as well as post-manufacturing support to many of the world's leading original equipment manufacturers.
United States Cellular Corporation (USM - Free Report) sports a Zacks Rank of 1 at present. In the last reported quarter, it delivered an earnings surprise of 150%.
U.S. Cellular has taken concrete steps to accelerate subscriber additions and improve churn management. The company aims to offer the best wireless experience to customers by providing superior quality network and national coverage. It is well-positioned to support the investment required for network enhancements, including the deployment of 5G technology.