Latest news with #Jabil
Globe and Mail
4 hours ago
- Business
- Globe and Mail
Don't Overlook Jabil (JBL) Stock After Topping Its Q3 Expectations
Jabil Inc. JBL was a notable standout in a relatively quiet earnings lineup this week, as investors eyed ongoing conflicts in the Middle East that could potentially impact markets. That said, Jabil is one of the largest global suppliers of electronics manufacturing services and is worthy of investors' attention after posting strong results for its fiscal third quarter on Tuesday. Trading near 52-week highs of over $200 a share, here's a look at why Jabil stock may be poised for more upside. Jabil Customer Base Overview Serving a wide range of major global companies across various industries, two of Jabil's most prominent customers include Apple AAPL and Amazon AMZN. As two of its largest clients, Apple relies on Jabil's manufacturing components for iPhones, among other devices, with Amazon relying on Jabil's computing and hardware services for AWS. While Apple and Amazon have accounted for significant portions of Jabil's revenue, the company has made significant efforts to diversify its customer base, with other noteworthy and diverse clients being healthcare giant Johnson & Johnson JNJ and communication networks leader Ericsson ERIC. Jabil's Strong Q3 Results Briefly reviewing Jabil's strong quarterly results, Q3 sales spiked 15% year over year to $7.82 billion and topped estimates of $7.08 billion by 10%. More impressive, Q3 EPS of $2.55 soared 35% from $1.89 in the comparative quarter and beat earnings expectations of $2.33 per share by 9%. Continuing its compelling and consistent operational performance, Jabil has now surpassed the Zacks EPS Consensus for 21 consecutive quarters with an average earnings surprise of 6.68% over the last four quarters. Jabil's Guidance & Outlook Offering guidance for its fiscal fourth quarter, Jabil expects Q4 sales in the range of $7.1 billion-$7.8 billion, with the current Zacks Consensus at $7.55 billion or 8% growth. Jabil expects Q4 EPS at $2.64-$3.04, with Zacks projections currently at $2.75 or 19% growth. Correlating with its diverse customer base and strategic alignment with secular trends such as AI, Jabil expects to see continued revenue expansion, margin enhancement, and robust free cash flow generation in the coming years. JBL Performance & Valuation Year to date, Jabil stock is up over +40% and has blown away the performance of the broader indexes, which have been virtually flat. More intriguing, JBL is sitting on gains of more than +200% in the last three years to impressively outpace the stock performances of its top big tech customers in Amazon and Apple and the benchmark S&P 500 and Nasdaq's returns of +60% and +80%, respectively. Image Source: Zacks Investment Research Despite vastly outperforming the broader market, JBL still trades at a slight discount to the benchmark at 22.9X forward earnings. This is also a noticeable discount to the high P/E premiums that many top-performing tech stocks can command. Conclusion & Final Thoughts Jabil stock currently sports a Zacks Rank #2 (Buy) as earnings estimates have started to trend higher following its strong Q3 results for fiscal 2025 and FY26. Also suggesting JBL is worthy of investors' consideration is that Jabil is on track to generate over $1.2 billion in free cash flow this year and has a healthy balance sheet with debt to core EBITDA levels of approximately 1.4X. Furthermore, Jabil is on track to complete a $1 billion share repurchase plan, reflecting management's confidence that its strong operational performance will continue. Zacks Names #1 Semiconductor Stock It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom. With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028. See This Stock Now for Free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Jabil, Inc. (JBL): Free Stock Analysis Report Inc. (AMZN): Free Stock Analysis Report Apple Inc. (AAPL): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report Ericsson (ERIC): Free Stock Analysis Report
Hans India
16 hours ago
- Business
- Hans India
Apple Strengthens India Ties as Foxconn and Tata Expand iPhone Manufacturing Operations
Apple appears committed more than ever to its "Make in India" vision, further expanding local manufacturing partnerships to ramp up iPhone production. As geopolitical uncertainties surrounding China persist, Apple is leaning into India not just as a key market but as a crucial production base for global supply. The latest development sees Foxconn, one of Apple's largest and most trusted contract manufacturers, reportedly setting up a new facility in Tamil Nadu dedicated to producing metal enclosures—or chassis—for iPhones. This marks the first time Foxconn will handle this specific component's production in India. According to an Economic Times report, the new facility will be located inside the ESR Industrial Park in Oragadam, Tamil Nadu. While Foxconn already assembles iPhones at its Sriperumbudur unit and manufactures AirPods in Hyderabad, this chassis unit represents a new frontier in Apple's vertical integration efforts within India. The move is expected to raise Foxconn's local iPhone production value by about 2–3 percent—a modest gain with potentially strategic significance. Apple has already been collaborating with Tata Electronics, which currently manufactures iPhone metal casings in the country. Foxconn joining this 'super-exclusive' manufacturing group signals a solidifying of India's importance in Apple's global supply chain. Though this change is unlikely to directly affect iPhone prices for consumers, it could streamline Apple's go-to-market timelines, helping improve product availability both in India and globally. Faster manufacturing and assembly cycles often lead to better stock management and export potential—benefits that Apple seems keen to capitalize on. Construction of Foxconn's new unit is reportedly moving ahead swiftly, although there is no official confirmation yet regarding its operational start date. Moreover, within the same facility, Foxconn is said to be planning another unit focused on assembling display modules for iPhones—another vital component in the smartphone's build. The diversification of Apple's production ecosystem in India doesn't end with iPhones. Recent reports indicate Apple is also increasing local production of plastic enclosures for its popular AirPods. Jabil, another Apple supplier, is reportedly in the process of setting up a new manufacturing plant in Tiruchirappalli, Tamil Nadu, to support this initiative. Currently, Jabil produces AirPods casings in Pune, but the new facility is expected to expand capacity further. The enclosures manufactured here will be shipped to China and Vietnam for final assembly. With multiple manufacturing partners now operating in India—Tata Electronics, Foxconn, and Jabil—Apple is steadily building a robust ecosystem that could reduce its dependence on traditional East Asian supply routes. These developments not only signify Apple's increasing confidence in Indian manufacturing but also place India firmly on the global tech production map.
India Today
18 hours ago
- Business
- India Today
Apple doubles down on India manufacturing as Foxconn joins Tata in making iPhone chassis in Tamil Nadu
Apple is doubling down on India, be it through product launches and affordability options to making them locally in the country. We know that ever since things got a bit dicey with China, it has been pushing to make more and more in India, especially products destined for the US market – even if Donald Trump wants Cupertino to specifically make iPhones in the US. In line with its growing make in India push, Apple is reportedly pursuing to ramp up the local assembly of a key iPhone component – the enclosure or Electronics already manufactures iPhone casings in India. But soon, Foxconn, too, might join this super-exclusive group. According to a new Economic Times report, Foxconn – which is one of Apple's biggest contract manufacturers – is on the verge of setting up a dedicated unit for making the metal enclosures for iPhones. It is likely to be located inside the ESR Industrial Park in Oragadam, Tamil Nadu. Foxconn does a lot of things Apple-wise. It assembles iPhones at its Sriperumbudur facility and AirPods in Hyderabad. It is also reportedly planning a major iPhone assembly expansion with a separate facility near Bengaluru. But this is the first time it's seemingly going to build iPhone casings locally. This should increase its overall iPhone production value percentage by another 2-3 percent, a small yet potentially far-reaching it is highly unlikely to impact the final iPhone pricing for the customer, it could speed up Apple's go-to market time, boosting stock and availability – and perhaps lead to even greater exports. The construction of this reported unit appears to be in full swing, though there is no word on when it will commence operations. Within the same facility, Foxconn is also reportedly setting up another unit that would focus on making the display module for iPhones. While this was about iPhones, recent reports have indicated that Apple plans to also ramp up the production of plastic enclosures for AirPods in India before they are shipped out to China and Vietnam for final assembly. Jabil, another Apple supplier, is said to be working to set up a new factory for the purpose in Tiruchirappalli, Tamil Nadu. Jabil currently makes AirPods casings in Pune.
Yahoo
2 days ago
- Business
- Yahoo
Why AI Stock Jabil Crushed the Market on Tuesday
The contract electronics manufacturer delivered solid third-quarter results. Its business is benefiting handsomely from the proliferation of artificial intelligence (AI), and it's also doing well supplying cloud computing customers. 10 stocks we like better than Jabil › The intense take-up of artificial intelligence (AI) has been a powerful motor driving contract electronics manufacturer Jabil (NYSE: JBL) lately. It also helped power the company's latest quarterly results, which were published Tuesday morning. Investors very much liked what they saw in the numbers, and rewarded the company by boosting its share price nearly 9% higher on the day. Jabil's fiscal third quarter of 2025 results were posted before market open, and they set the tone for the stock that day. Revenue rose by a sturdy 16% year over year to just over $7.8 billion, handily beating the average analyst estimate of $7 billion. The story was similar on the bottom line, with "core" -- i.e. non-GAAP (generally accepted accounting principles) adjusted -- net income rising 21% to $279 million, or $2.55 per share. The latter number was well above the consensus $2.29 projected by analysts tracking Jabil stock. Management attributed the double-digit gains to growth in expanding end markets, such as data centers infrastructure, and cloud computing. Its intelligent infrastructure segment did particularly well, thanks greatly to intensifying demand for artificial intelligence (AI) solutions. Meanwhile, Jabil announced it is to invest roughly $500 million to expand its manufacturing footprint in the Southwest U.S., specifically targeting the AI and cloud businesses. The company wrote that this will "enable new large-scale manufacturing capabilities, capital investments, and workforce development." Such facilities should come onstream in mid-2026, it added. Jabil also proffered guidance for both its current quarter and the entirety of fiscal 2025. For the latter period, it's anticipating revenue of $29 billion, filtering down into adjusted net income of $9.33 per share. Those figures in fiscal 2024 were a respective $28.9 billion, and $8.49. Even with that post-earnings pop, Jabil remains a somewhat under-the-radar play on the explosion of AI. As such, I'd flag it as a sleeper stock in that pack, and one well worth consideration as a buy. Before you buy stock in Jabil, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Jabil wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $660,821!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $886,880!* Now, it's worth noting Stock Advisor's total average return is 791% — a market-crushing outperformance compared to 174% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why AI Stock Jabil Crushed the Market on Tuesday was originally published by The Motley Fool Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Globe and Mail
2 days ago
- Business
- Globe and Mail
Jabil Q3 Earnings Surpass Estimates on Solid Demand, Guidance Raised
Jabil, Inc. JBL reported strong third-quarter fiscal 2025 results, with both bottom and top lines surpassing the Zacks Consensus Estimate. However, the company reported a top line expansion year over year, owing to healthy traction in the data center infrastructure, capital equipment, cloud and digital commerce end-markets. JBL's Net Income Net income on a GAAP basis in the quarter was $222 million or $2.03 per share compared with $129 million or $1.06 in the prior-year quarter. The improvement is primality driven by top line growth. Non-GAAP net income in the reported quarter was $279 million or $2.55 per share compared with $230 million or $1.89 in the prior-year quarter. The bottom line surpassed the Zacks Consensus Estimate of $2.33. JBL's Revenues Net sales during the quarter increased to $7.82 billion from $6.76 billion reported in the year-ago quarter. The top line beat the consensus estimate of $7.08 billion. Solid demand in Intelligent Infrastructure and Connected Living & Digital Commerce boosted the top line. In the fiscal third quarter, the Regulated Industries segment generated $3.1 billion in revenues, flat year over year. The segment contributed 39% 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 $3.4 billion in revenues. The segment contributed 44% of total revenues, up 51% year over year. The healthy demand in the Capital Equipment, AI-related Cloud and Data Center Infrastructure verticals supported the net sales. About 17% of the total revenues came from the Connected Living & Digital Commerce segment. Net sales declined to $1.3 billion, down 7% year over year from this segment, owing to soft demand for consumer driven products. Strong growth in digital commerce and warehouse automation markets partially reversed this trend. JBL's Other Details Gross profit was $681 million compared with $608 million in the year-ago quarter. Non-GAAP operating income aggregated $420 million, up from $350 million in the year-ago period. Non-GAAP operating margin was 5.4% down from the year-ago quarter's figure of 6%. JBL's Cash Flow & Liquidity In third-quarter fiscal 2025, Jabil generated $406 million of net cash from operating activities. As of May. 31, 2025, the company had $1.52 billion in cash and cash equivalents, with $2.38 billion of notes payable and long-term debt. JBL's Guidance Up For the fourth quarter of fiscal 2025, revenues are expected to be in the range of $7.1-$7.8 billion. Non-GAAP operating income is projected in the $428-$488 million range. Management estimates non-GAAP earnings per share within the band of $2.64-$3.04. 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 $29 billion, up from the prior estimation of $27.9 billion. Non-GAAP earnings per share are expected at $9.33, up from $8.95 previously estimated. The company is expected to generate more than $1.2 billion in adjusted free cash flow. JBL's Zacks Rank & Stock to Consider Jabil currently carries a Zacks Rank #2 (Buy). Some better-ranked stocks in the broader industry have been discussed below. Juniper Networks, Inc. JNPR sports a Zacks Rank of 1 (Strong Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here. In the last reported quarter, it delivered an earnings surprise of 4.88%. Juniper is leveraging the 400-gig cycle to capture hyperscale switching opportunities inside the data center. The company is set to capitalize on the increasing demand for data center virtualization, cloud computing and mobile traffic packet/optical convergence. Juniper also introduced new features within the AI-driven enterprise portfolio that enable customers to simplify the rollout of their campus wired and wireless networks while bringing greater insight to network operators. Ubiquiti, Inc. UI carries a Zacks Rank #2 at present. In the trailing four quarters, InterDigital delivered an earnings surprise of 29.93%. In the last reported quarter, Ubiquiti delivered an earnings surprise of 61.29%. Ubiquiti boasts a proprietary network communication platform that is well equipped to meet end-market customer needs. It is witnessing healthy traction in the Enterprise Technology segment, driven by the growing proliferation of IoT devices across industries. Arista Networks, Inc. ANET, carrying a Zacks Rank of 2 at present, supplies products to a prestigious set of customers, including Fortune 500 global companies in markets such as cloud titans, enterprises, financials and specialty cloud service providers. Arista delivered a trailing four-quarter average earnings surprise of 11.82% and has a long-term growth expectation of 14.81%. Arista currently serves five verticals, namely cloud titans (customers that deploy more than one million servers), cloud specialty providers, service providers, financial services and the rest of the enterprise. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. Today, See These 5 Potential Home Runs >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Juniper Networks, Inc. (JNPR): Free Stock Analysis Report Jabil, Inc. (JBL): Free Stock Analysis Report Arista Networks, Inc. (ANET): Free Stock Analysis Report Ubiquiti Inc. (UI): Free Stock Analysis Report
