Jabil Q2 Earnings Surpass Estimates on Solid Demand, Guidance Raised

Jabil, Inc. JBL reported strong second-quarter fiscal 2025 results, with both bottom and top lines surpassing the Zacks Consensus Estimate. However, the company reported a top-line decline year over year, owing to weakness in some verticals. Healthy traction in the data center infrastructure, cloud and digital commerce end-markets is a tailwind.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.JBL’s Net IncomeNet income on a GAAP basis in the quarter was $117 million or $1.06 per share compared with $927 million or $7.31 in the prior-year quarter. The gain from the mobility business divestiture boosted the net income in the prior-year quarter.Non-GAAP net income in the reported quarter was $215 million or $1.94 per share compared with $213 million or $1.68 in the prior-year quarter. The bottom line surpassed the Zacks Consensus Estimate of $1.81.Jabil, Inc. Price, Consensus and EPS Surprise Jabil, Inc. price-consensus-eps-surprise-chart | Jabil, Inc. QuoteJBL’s RevenuesNet sales during the quarter decreased to $6.72 billion from $6.76 billion reported in the year-ago quarter. However, the top line beat the consensus estimate of $6.4 billion. Demand softness in several end markets impeded the top line.In the fiscal second quarter, the Regulated Industries segment generated $2.7 billion in revenues, down 8% year over year. The segment contributed 41% 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 $2.6 billion in revenues. The segment contributed 39% of total revenues, up 18% year over year. The Healthy demand in the Capital Equipment, AI-related Cloud and Data Center Infrastructure verticals supported the net sales.About 20% of the total revenues came from the Connected Living & Digital Commerce segment. Net sales declined to $1.3 billion, down 13% year over year from this segment, owing to mobility divestiture and soft demand for consumer driven connected living products. Strong growth in digital commerce and warehouse automation markets partially reversed this trend.JBL’s Other DetailsGross profit was $576 million compared with $630 million in the year-ago quarter. Non-GAAP operating income aggregated $334 million, down from $338 million in the year-ago period. Non-GAAP operating margin was 5% matching the year-ago quarter’s figure.JBL’s Cash Flow & LiquidityIn second-quarter fiscal 2025, Jabil generated $334 million of net cash from operating activities compared with $218 million in the previous year’s quarter. As of Feb. 28, 2025, the company had $1.59 billion in cash and cash equivalents, with $2.88 billion of notes payable and long-term debt.JBL’s Guidance UpFor the third quarter of fiscal 2025, revenues are expected to be in the range of $6.7-$7.3 billion. Non-GAAP operating income is projected in the $348-$408 million range. Management estimates non-GAAP earnings per share within the band of $2.08-$2.48.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 $27.9 billion, up from the prior estimation of $27.3 billion. Non-GAAP earnings per share are expected at $8.95, up from $8.75 previously estimated. The company is expected to generate more than $1.2 billion in adjusted free cash flow.JBL’s Zacks RankJBL currently carries a Zacks Rank #2 (Buy).Other Stocks to ConsiderInterDigital IDCC sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.In the trailing four quarters, it delivered an earnings surprise of 158.41%. It is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company designs and develops a wide range of advanced technology solutions used in digital cellular, wireless 3G, 4G and IEEE 802-related products and networks.Celestica Inc. CLS carries a Zacks Rank #2 at present. The company provides competitive manufacturing technology and service solutions for printed circuit assembly and system assembly, as well as post-manufacturing support to many of the world's leading original equipment manufacturers.United States Cellular Corporation USM sports a Zacks Rank of 1 at present. In the last reported quarter, it delivered an earnings surprise of 150%.U.S. Cellular has taken concrete steps to accelerate subscriber additions and improve churn management. The company aims to offer the best wireless experience to customers by providing superior quality network and national coverage. It is well-positioned to support the investment required for network enhancements, including the deployment of 5G technology.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>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 United States Cellular Corporation (USM): Free Stock Analysis Report Jabil, Inc. (JBL): Free Stock Analysis Report Celestica, Inc. (CLS): Free Stock Analysis Report InterDigital, Inc. (IDCC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks