Jabil Set to Report Q2 Results: Will Revenue Decline Impact Earnings?

Jabil Inc. JBL is set to release second-quarter fiscal 2025 results on March 20, before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 6.95%. It pulled off a trailing four-quarter earnings surprise of 3.52%, on average.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.The leading global supplier of electronic manufacturing services is expected to have recorded a revenue decline year over year in the second quarter of fiscal 2025. Intensifying competition, demand softness in some verticals and macro headwinds are likely to have affected revenue growth. However, its strategy of increasing portfolio offerings with strategic acquisition and innovation is a tailwind.Factors at Play for JBL’s Q2 EarningsDuring the quarter, Jabil collaborated with Apptronik, a prominent robotics company, to support the production of Apollo humanoid robots. Jabil will deploy the robots into its manufacturing operations. In the JBL factory environment, the robots will be used to perform tasks including inspection, sorting, kitting, lineside delivery, fixture placement and more. This will allow for real-world validation prior to deployments across Apptronik customer sites. This strategic collaboration has boosted Jabil’s prospect in the emerging market of manufacturing automation.In the to-be-reported quarter, Jabil has completed the acquisition of Pharmaceutics International, Inc. for an undisclosed amount. Pharmaceutics International boasts leading-edge manufacturing facilities that include the formulation development center, analytical and microbiology laboratories, an aseptic facility for injectables like vials and syringes and more. Integration of Pharmaceutics International’s extensive capabilities will significantly bolster Jabil’s pharmaceutical product offerings and will enable it to develop more advanced solutions for pharma companies. These developments are likely to have a favorable impact on Jabil’s fiscal second-quarter results.However, soft demand trends in multiple end markets, such as Networks and Communications and Connected Living, are expected to have impeded net sales growth during the quarter. Intensifying competition from both domestic and international electronic manufacturers, manufacturing service providers, and design providers is weighing on margin. Growing geopolitical volatility is a concern.Overall Expectations From JBLFor the February quarter, the Zacks Consensus Estimate for revenues is pegged at $6.41 billion, which indicates a decline from the year-ago quarter’s reported number of $6.77 billion. The consensus estimate for earnings is pegged at $1.81 per share, implying an improvement from $1.68 reported in the prior-year quarter.Earnings Whispers for JBLOur proven model doesn’t conclusively predict an earnings beat for Jabil this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.JBL’s Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%, with both pegged at $1.81. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Jabil, Inc. Price and EPS Surprise Jabil, Inc. price-eps-surprise | Jabil, Inc. QuoteJBL’s Zacks Rank: Jabil currently has a Zacks Rank #2.Stocks to ConsiderHere are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:Amprius Technologies, Inc. AMPX is set to release its quarterly numbers on March 20. It has an Earnings ESP of +1.23% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.The Earnings ESP for Intuitive Machines, Inc. LUNR is +9.11%. The company carries a Zacks Rank of 3 at present. It is scheduled to report quarterly numbers on March 24.The Earnings ESP for Paychex PAYX is +0.83% and it carries a Zacks Rank of 2. The company is scheduled to report quarterly numbers on March 26.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant 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 Paychex, Inc. (PAYX): Free Stock Analysis Report Jabil, Inc. (JBL): Free Stock Analysis Report Amprius Technologies, Inc. (AMPX): Free Stock Analysis Report Intuitive Machines, Inc. (LUNR): 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