Jabil Q3 Results Beat Analysts’ Expectations; Shares Up 2%

Jabil (JBL) delivered better-than-expected quarterly earnings and revenue in the fiscal third quarter of 2021. Jabil is a provider of manufacturing services on a worldwide basis.

Following the results, the share price was up 2.3% to close at $57.83 on June 17.

Revenues of $7.2 billion surpassed the Street’s estimates of $6.95 billion and jumped 13.9% from the year-ago period.

Earnings came in at $1.30 per share, which outpaced consensus estimates of $1.04 per share. Also, earnings were up 251.4% year-over-year.

Jabil CEO Mark Mondello said, “I’m confident in our plan. As a result, we are raising our financial outlook for the balance of the year. We now expect FY21 revenue to be in the neighborhood of $29.5 billion, with core EPS of approximately $5.50.” (See Jabil stock chart on TipRanks)

For fiscal Q4, the company expects revenues to come in the range of $7.3 – $7.9 billion. The consensus estimate is pegged at $6.95 billion. Earnings per share are expected to come in the band of $1.25 – $1.45, versus the consensus estimate of $1.17 per share.

Following the fiscal Q3 earnings release, Raymond James analyst Adam Tindle reiterated a Buy rating on the stock but increased the price target to $66 from $58. This implies 14.1% upside potential to current levels.

Tindle commented, “Operating margin expansion continues, cash flow trends remain healthy despite a difficult supply environment, and we anticipate continued improvement in these key metrics during FY22.”

The rest of the Street is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 3 Buys and 1 Hold. The Jabil average analyst price target of $68.50 implies 18.5% upside potential from current levels. Shares have increased 36.3% over the past six months.

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