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 (JBL) Q4 Earnings and Revenues Surpass Estimates
Read MoreHide Full Article
Jabil Inc. (JBL - Free Report) reported better-than-expected fiscal fourth-quarter 2017 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 64 cents per share, which beat the Zacks Consensus Estimate of 61 cents and were much higher than the prior-year quarter’s figure of 28 cents.
Revenues increased year over year to $5.02 billion from $4.43 billion and outpaced the Zacks Consensus Estimate of $4.89 billion as well.
Electronics Manufacturing Services (EMS) revenues (representing 57% of revenues) came in at about $2.87 billion, up 3% year over year. Diversified Manufacturing Services (DMS) revenues (43% of revenues) increased 32% year over year to $2.15 billion.
The year-over-year improvement was primarily driven by the better-than-expected performance of the EMS segment coupled with double-digit growth at the company’s Healthcare and Packaging businesses part of the DMS segment.
The company earned approximately $191.5 million in core operating income. Core operating margin was 3.8%, representing a 140 basis points (bps) improvement year over year.
Notably, shares of Jabil have gained 20.6% year to date, outperforming the industry’s rally of 12.7%.
Operating Details
Gross margin expanded nearly 120 bps on a year-over-year basis to 8.5%.
The company’s operating income increased 25.9% year on year to $118.1 million.
Balance Sheet & Cash Flow
The company exited the quarter with cash and cash equivalents of $1.19 billion, compared with $912.1 million as of Aug 31, 2016.
Cash flow from operations in fiscal 2017 was $1.26 billion compared with $916.2 million in fiscal 2016.
Restructuring Program
The company continued with its plans to realign its global capacity and administrative support infrastructure so as to optimize organizational effectiveness amid a sluggish macroeconomic scenario. The company is progressing with its efforts to improve organizational efficiency and effectiveness as planned. The company incurred approximately $160 million in charges in fiscal 2017.
Jabil Circuit, Inc. Price, Consensus and EPS Surprise
The company provided guidance for first-quarter fiscal 2018.
For the first quarter, Jabil expects total revenue to increase 8% (at mid-point) year over year in the range of $5.25–$5.75 billion. Core operating income is estimated in the range of $198–$258 million.
DMS revenues are forecast to grow 13% year over year to $2.7 billion.
EMS revenues are anticipated to increase 3% on a year-over-year basis to $2.8 billion.
The company is expected to post core earnings in the range of 65–91 cents per share on a non-GAAP basis.
Other key stocks in the broader technology sector include, Applied Materials (AMAT - Free Report) , Activision Blizzard and IPG Photonics (IPGP - Free Report) , all sporting a Zacks Rank #1.
Long-term earnings growth rate for Applied Materials, Activision Blizzard and IPG Photonics is projected to be 17.1%, 13.6% and 19.7%, respectively.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
Image: Bigstock
Jabil (JBL) Q4 Earnings and Revenues Surpass Estimates
Jabil Inc. (JBL - Free Report) reported better-than-expected fiscal fourth-quarter 2017 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 64 cents per share, which beat the Zacks Consensus Estimate of 61 cents and were much higher than the prior-year quarter’s figure of 28 cents.
Revenues increased year over year to $5.02 billion from $4.43 billion and outpaced the Zacks Consensus Estimate of $4.89 billion as well.
Electronics Manufacturing Services (EMS) revenues (representing 57% of revenues) came in at about $2.87 billion, up 3% year over year. Diversified Manufacturing Services (DMS) revenues (43% of revenues) increased 32% year over year to $2.15 billion.
The year-over-year improvement was primarily driven by the better-than-expected performance of the EMS segment coupled with double-digit growth at the company’s Healthcare and Packaging businesses part of the DMS segment.
The company earned approximately $191.5 million in core operating income. Core operating margin was 3.8%, representing a 140 basis points (bps) improvement year over year.
Notably, shares of Jabil have gained 20.6% year to date, outperforming the industry’s rally of 12.7%.
Operating Details
Gross margin expanded nearly 120 bps on a year-over-year basis to 8.5%.
The company’s operating income increased 25.9% year on year to $118.1 million.
Balance Sheet & Cash Flow
The company exited the quarter with cash and cash equivalents of $1.19 billion, compared with $912.1 million as of Aug 31, 2016.
Cash flow from operations in fiscal 2017 was $1.26 billion compared with $916.2 million in fiscal 2016.
Restructuring Program
The company continued with its plans to realign its global capacity and administrative support infrastructure so as to optimize organizational effectiveness amid a sluggish macroeconomic scenario. The company is progressing with its efforts to improve organizational efficiency and effectiveness as planned. The company incurred approximately $160 million in charges in fiscal 2017.
Jabil Circuit, Inc. Price, Consensus and EPS Surprise
Jabil Circuit, Inc. Price, Consensus and EPS Surprise | Jabil Circuit, Inc. Quote
Guidance
The company provided guidance for first-quarter fiscal 2018.
For the first quarter, Jabil expects total revenue to increase 8% (at mid-point) year over year in the range of $5.25–$5.75 billion. Core operating income is estimated in the range of $198–$258 million.
DMS revenues are forecast to grow 13% year over year to $2.7 billion.
EMS revenues are anticipated to increase 3% on a year-over-year basis to $2.8 billion.
The company is expected to post core earnings in the range of 65–91 cents per share on a non-GAAP basis.
Zacks Rank & Stocks to Consider
Currently, Jabil Circuit sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Other key stocks in the broader technology sector include, Applied Materials (AMAT - Free Report) , Activision Blizzard and IPG Photonics (IPGP - Free Report) , all sporting a Zacks Rank #1.
Long-term earnings growth rate for Applied Materials, Activision Blizzard and IPG Photonics is projected to be 17.1%, 13.6% and 19.7%, respectively.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>