Jabil (JBL, $68.33) beats fiscal Q1 earnings expectations; boosts 2023 forecast
Jabil posted its first quarter earnings that exceeded analysts’ expectations, and also raised its full-year outlook on expectations of strong demand.
The manufacturing services company’s adjusted EPS came in at $2.31 for the three months through Nov. 30, topping the Street's expectations of $2.24.
Revenue rose to $9.64 billion, from $8.57 billion in the year-ago quarter, and beating the Street's forecast of $9.29 billion. The diversified manufacturing segment revenue grew +8% to $5.1 billion, while the electronics business climbed +18% to $4.5 billion.
Jabil expects adjusted profit of $8.40 a share for fiscal 2023, an upward revision of +$0.25 from its prior guidance, and higher than consensus forecast of $8.27 (based on Capital IQ data, as reported in MT NewsWires). The manufacturing services company also reaffirmed its revenue outlook of $34.5 billion.
Demand across most end markets remains "extremely resilient," and continues to benefit from "strong secular tailwinds," Chief Financial Officer Michael Dastoor mentioned in an earnings call, (according to a Capital IQ transcript).
"We feel the outlook for our business is solid and expect demand across many of our end markets to remain strong with year-over-year revenue growth at an enterprise level to be approximately 3% for (fiscal 2023) despite an assumed economic slowdown in the second half of the fiscal year." Dastoor added. Automotive revenue growth is on track to be more than 40%, and health care and industrial businesses are expected to grow in double-digits, alongwith strong gains in 5G wireless, as indicated by Dastoor.
Momentum Indicator for JBL turns positive, indicating new upward trend
JBL saw its Momentum Indicator move above the 0 level on October 11, 2024. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 82 similar instances where the indicator turned positive. In of the 82 cases, the stock moved higher in the following days. The odds of a move higher are at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for JBL just turned positive on September 13, 2024. Looking at past instances where JBL's MACD turned positive, the stock continued to rise in of 47 cases over the following month. The odds of a continued upward trend are .
JBL moved above its 50-day moving average on September 18, 2024 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for JBL crossed bullishly above the 50-day moving average on September 23, 2024. This indicates that the trend has shifted higher and could be considered a buy signal. In of 19 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where JBL advanced for three days, in of 344 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The 10-day RSI Indicator for JBL moved out of overbought territory on October 15, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 36 similar instances where the indicator moved out of overbought territory. In of the 36 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where JBL declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
JBL broke above its upper Bollinger Band on September 26, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 76, placing this stock better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. JBL’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: JBL's P/B Ratio (7.825) is slightly higher than the industry average of (2.993). P/E Ratio (10.728) is within average values for comparable stocks, (72.897). JBL's Projected Growth (PEG Ratio) (0.000) is slightly lower than the industry average of (1.363). Dividend Yield (0.003) settles around the average of (0.024) among similar stocks. P/S Ratio (0.516) is also within normal values, averaging (3.550).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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General Information
a manufacturer of electronics products
Industry ElectronicComponents