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Jabil (JBL) Q2 Earnings Beat Estimates, Revenues Rise Y/Y

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Jabil Inc. JBL reported second-quarter fiscal 2022 earnings of $1.68 per share, which beat the Zacks Consensus Estimate by 15.1% and grew 32.3% year over year.

The company’s share price jumped 9.7% on Mar 16.

Revenues increased 10.6% year over year to $7,553 million, beating the consensus estimate by 1.9%. Solid demand in key end markets together with excellent operational execution and skillful management of supply chain dynamics drove the performance.

Jabil, Inc. Price, Consensus and EPS Surprise

Jabil, Inc. Price, Consensus and EPS Surprise
Jabil, Inc. Price, Consensus and EPS Surprise

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

Quarter Details

Diversified Manufacturing Services (DMS) revenues improved 4% year over year, driven by growth in several end markets, such as healthcare, automotive and mobility.

Electronics Manufacturing Services (EMS) revenues increased 19% year over year, led by robust digital print and retail performances, industrial and semi cap, and 5G wireless and cloud businesses.

Gross profit increased to $609 million from $569 million year over year. Operating income grew to $313 million from $236 million.

Cash Flow & Liquidity

In the first six months of fiscal 2022, Jabil’s operating cash flow was $200 million compared with $86 million in the year-ago period. As of Feb 28, 2022, the company had $1,093 million in cash and cash equivalents with $2,380 million of notes payable and long-term debt.

Guidance

For third-quarter fiscal 2022, Jabil expects revenues between $7.9 billion and $8.5 billion. Operating income is estimated in the $276-$336 million range. The company’s non-GAAP earnings per share are expected between $1.40 and $1.80.

Thanks to strong secular tailwinds and momentum in many end markets, the company raised outlook for fiscal 2022. It now expects revenues of approximately $32.6 billion and core EPS of about $7.25.

Zacks Rank & Stocks to Consider

Jabil currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Clearfield, Inc. CLFD is a better-ranked stock in the broader Zacks Computer and Technology sector, sporting a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings has been revised 20.5% upward over the past 60 days.

Clearfield delivered a trailing four-quarter earnings surprise of 50.7%, on average. It has gained 95.5% in the past year.

Qualcomm, Inc. QCOM, carrying a Zacks Rank #2 (Buy), is another solid pick for investors. The consensus estimate for current-year earnings has been revised upward by 12.2% over the past 60 days.

Qualcomm delivered a trailing four-quarter earnings surprise of 12.2%, on average. It has appreciated 16% in the past year.

Sierra Wireless, Inc. SWIR also carries a Zacks Rank #2. The consensus mark for current-year earnings has been revised upward by 237.5% over the past 60 days.

Sierra Wireless pulled off a trailing four-quarter earnings surprise of 58%, on average. The stock has inched up 3.7% in the past year.


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