Jabil’s Sales Guidance Tops Estimates After 2Q Beat; Shares Jump Pre-Market


Jabil forecasted better-than-expected sales in the fiscal third quarter and the fiscal year 2021 after results topped consensus estimates in fiscal 2Q. Shares of the manufacturing solutions provider rose almost 3% in Tuesday’s pre-market trading session.

Jabil’s (JBL) 2Q adjusted earnings more than doubled to $1.27 per share on a year-over-year basis and surpassed the Street estimates of $0.95.

Net revenues surged 11.5% year-over-year to $6.8 billion and outpaced analysts’ expectations of $6.57 billion. The outstanding performance was driven mainly by a 26% rise in diversified manufacturing services (DMS) revenue.

Jabil CEO Mark Mondello commented, “I’m extremely confident in our plan moving forward, which is supported by both strong secular tailwinds and accelerated momentum in many of the end-markets we serve.” (See Jabil stock analysis on TipRanks)

For the fiscal year 2021, the company projects revised adjusted EPS of $5.00 per share, versus analysts’ expectations of $4.64. Revenue is expected to be $28.5 billion, versus the consensus estimate of $27.6 billion.

For the fiscal third quarter, net revenue is expected to be between $6.6 billion and $7.2 billion, versus the consensus estimate of $6.3 billion. Adjusted EPS is forecasted to be in the range of $0.90-$1.10, versus the consensus estimate of $0.93.

Recently, RBC Capital analyst Robert Muller reiterated a Hold rating and a price target of $49 on the stock.

The rest of the Street is cautiously optimistic about the stock with a Moderate Buy consensus rating. That’s based on 3 Buys versus 2 Holds. The average analyst price target of $52.40 implies 7.3% upside potential to current levels. Shares have increased 49.2% over the past six months.

Jabil scores a 9 out of 10 from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.

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