Jabil
JBL
reported first-quarter fiscal 2022 earnings of $1.92 per share, which beat the Zacks Consensus Estimate by 6.67% and improved 20% year over year.
Revenues increased 9.4% year over year to $8.57 billion that beat the consensus mark by 3.45%.
Jabil’s shares increased 1.05% to close at $64.45 on Dec 16 following fiscal first-quarter results. Jabil has risen 51.6% year to date compared with 33.6% growth of the Zacks
Electronics Manufacturing Services
industry. The Zacks
Computer & Technology
sector rose 25.3% in the same time frame.
Quarter Details
Diversified Manufacturing Services (DMS) revenues accounted for 55% of total revenues and improved 11.1% year over year to $3.6 billion. The upside can be attributed to growth in several end-markets, such as healthcare, automotive and mobility.
Electronics Manufacturing Services (EMS) revenues accounted for 45% of total revenues and increased 7.4% year over year to $3.9 billion. The growth was primarily driven by robust digital print and retail performances, industrial and semi cap, and 5G wireless and cloud businesses.
Jabil, Inc. Price, Consensus and EPS Surprise
Jabil, Inc. price-consensus-eps-surprise-chart
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Jabil, Inc. Quote
Gross margin, on a GAAP basis, contracted 20 basis points (bps) year over year to 7.9%.
Core EBITDA margin expanded 20 bps on a year-over-year basis to 7.3%.
As a percentage of revenues, selling, general and administrative (SG&A) expenses declined 30 bps year over year to 3.6%, while research & development (R&D) expenses were unchanged on a year-over-year basis at 0.1%.
Non-GAAP core operating margin was unchanged on a year-over-year basis at 4.7%.
EMS operating margin expanded 40 bps year over year to 3.8%. DMS operating margin was 5.4%.
Balance Sheet & Cash flow
As of Nov 30, 2021, cash and cash equivalents were $1.23 billion compared with $1.57 billion as of Aug 31, 2021.
Jabil reported cash flow used from operations of $46 million and adjusted free cash outflow of $119 million in the reported quarter.
The company also repurchased approximately 2.7 million shares for $127 million.
Guidance
For second-quarter fiscal 2021, Jabil expects total revenues between $7.1 billion and $7.7 billion.
DMS revenues are expected to be $3.8 billion, suggesting an increase of 4% year over year. EMS revenues are forecast at $3.6 billion, which indicates a rise of 14% year over year.
Core operating income is estimated in the $290-$350 million range. The company’s earnings are expected between $1.35 and $1.55 per share on a non-GAAP basis.
For fiscal 2022, revenues are expected to be around $31.8 billion, with projected core margin of 4.5%.
The company’s earnings are expected to be $6.55 per share on a non-GAAP basis.
Free cash flow for fiscal 2022 is expected to be more than $700 million.
Zacks Rank & Stocks to Consider
Jabil currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Computer & Technology sector are
Arrow Electronics
ARW
,
Salesforce
CRM
and
Alphabet
GOOGL
.
Currently, Arrow Electronics sports a Zacks Rank #1 (Strong Buy). You can see
the complete list of today’s Zacks #1 Rank stocks here. The long-term earnings growth rate is pegged at 27.36%
.
Arrow Electronics’ shares have returned 27.9% year to date compared with the Zacks
Electronics-Parts Distribution
industry’s growth of 30.6% and the Computer & Technology sector’s return of 25.2%.
Salesforce, another Zacks Rank #1 stock, has a long-term earnings growth rate of 16.75%.
Salesforce is up 13.8% against the Zacks
Computer Software
industry’s rally of 40.1% and the Computer & Technology sector’s return of 25.2% year to date.
The long-term earnings growth rate for Alphabet, another Zacks Rank #1 stock, is currently pegged at 25.82%.
Alphabet’s shares have surged 64.8% year to date compared with the
Internet-Services
industry’s growth of 40.5% and the Computer & Technology sector’s return of 25.3%.
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