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Category: Stock Market and Jabil
Date: 17 December 2019 Stock Price: $43.16 We take a look at the 1st quarter earnings release of their 2020 fiscal year of Jabil a company that provides comprehensive design, manufacturing, supply chain and product management services.
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About Jabil
Jabil (NYSE: JBL) is a product solutions company providing comprehensive design, manufacturing, supply chain and product management services. Operating from over 100 facilities in 29 countries, Jabil delivers innovative, integrated and tailored solutions to customers across a broad range of industries.
Overview of Jabil's latest earnings report
The numbers we are interested in (for the quarter):
- Net sales: $7.505 billion (up from $5.77 billion from the same quarter of the previous year)
- Revenue increased by 15.3% over the last 12 months
- Cost of revenue: $6.951 billion (up from $5.986 billion for the same quarter of the previous year)
- Cost of revenues increased by 16.1% over the last 12 months
- Net income: $40.422 million (down from $123.6 million for the same quarter of the previous year)
- Diluted income per share: $0.26 (down from $0.76 for the same quarter of the previous year)
- Diluted weighted-average shares outstanding: 156.462 million (down from 163.670 million for the same quarter of the previous year)
- Cash and cash equivalents: $719.842 billion
- Cash and cash equivalents per share: $4.6
- Cash and cash equivalents makes up 9.38% of Jabil's market capital
- Cash and cash equivalents makes up 4.9% of Jabil's total assets
- Inventories : $3.342 billion
- Inventories makes up 23.1% of Jabil's total assets
- Accounts receivable: $3.596 billion
- Accounts receivable makes up 24.9% of Jabil's total assets
- Stockholders equity of Jabil's: $1.849 billion
- Stockholders equity per share: $11.81
- Jabil is trading at 3.65 times its stockholders equity which is within the expected range of between 2 and 4 which most companies tend to trade at.
- Cash generated from operations: $20.944million
- Cash generated from operations per share $0.13
Jabil's management commentary on the results and earnings guidance
ST. PETERSBURG, Fla. – December 17, 2019 – Today, Jabil Inc. (NYSE: JBL), reported preliminary, unaudited financial results for its first quarter of fiscal year 2020.
“Our first quarter results reflect exceptional execution across all of our businesses,” said CEO Mark Mondello. “Our team delivered strong revenue and achieved our margin target, enabling us to drive core EPS well-above expectations,” he added.
“Our first quarter results reflect exceptional execution across all of our businesses,” said CEO Mark Mondello. “Our team delivered strong revenue and achieved our margin target, enabling us to drive core EPS well-above expectations,” he added.
Second Quarter of Fiscal Year 2020 Outlook:
• Net revenue $6.0 billion to $6.7 billion
• U.S. GAAP operating income $70 million to $189 million
• U.S. GAAP diluted earnings per share $0.09 to $0.40 per diluted share
• Core operating income (Non-GAAP) (1) $155 million to $255 million
• Core diluted earnings per share (Non-GAAP) (1) $0.62 to $0.82 per diluted share
• Diversified Manufacturing Services revenue Increase 4 percent year-on-year
• Electronics Manufacturing Services revenue Increase 5 percent year-on-year
• Total company revenue Increase 5 percent year-on-year
Fiscal Year 2020 Updated Outlook:
"In September, we outlined a strategic plan that focused on providing world-class solutions for our customers and value for our shareholders through a better ‘mix and balance’ of business. Today, I’m pleased to report our strategy remains intact and our plan is working well, as reflected by our first quarter results," added Mondello. “Given the nice start to the year, we now believe FY20 revenue will be in the neighborhood of $26.7 billion, while our outlook for core EPS increases from $3.45 to $3.60," continued Mondello
• Net revenue $6.0 billion to $6.7 billion
• U.S. GAAP operating income $70 million to $189 million
• U.S. GAAP diluted earnings per share $0.09 to $0.40 per diluted share
• Core operating income (Non-GAAP) (1) $155 million to $255 million
• Core diluted earnings per share (Non-GAAP) (1) $0.62 to $0.82 per diluted share
• Diversified Manufacturing Services revenue Increase 4 percent year-on-year
• Electronics Manufacturing Services revenue Increase 5 percent year-on-year
• Total company revenue Increase 5 percent year-on-year
Fiscal Year 2020 Updated Outlook:
"In September, we outlined a strategic plan that focused on providing world-class solutions for our customers and value for our shareholders through a better ‘mix and balance’ of business. Today, I’m pleased to report our strategy remains intact and our plan is working well, as reflected by our first quarter results," added Mondello. “Given the nice start to the year, we now believe FY20 revenue will be in the neighborhood of $26.7 billion, while our outlook for core EPS increases from $3.45 to $3.60," continued Mondello
Jabil (NYSE: JBL) stock price history
The image below, obtained from Google, shows the stock price history of Jabil (NYSE: JBL) over the last 5 year. And it's been a good time for Jabil stockholders. 5 years ago the stock of Jabil was trading at $21.40 a stock, and its currently it's trading at $43.16 Thats a very decent return of 101.6% provided over the last 5 years. The stock is also trading at a lot closer to its 52 week high of $44.20 than it is to its 52 week low of $21.49 which to us is a clear indication that the short term sentiment and momentum of the stock is very positive.
Recent coverage of Jabil (JBL)
The extract below, obtained from Zacks discusses Jabil's recent earnings report.
Jabil (JBL - Free Report) came out with quarterly earnings of $1.05 per share, beating the Zacks Consensus Estimate of $0.94 per share. This compares to earnings of $0.90 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 11.70%. A quarter ago, it was expected that this electronics manufacturer would post earnings of $0.86 per share when it actually produced earnings of $0.88, delivering a surprise of 2.33%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times. Jabil, which belongs to the Zacks Electronics - Manufacturing Services industry, posted revenues of $7.51 billion for the quarter ended November 2019, surpassing the Zacks Consensus Estimate by 7.88%. This compares to year-ago revenues of $6.51 billion. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Jabil shares have added about 63.9% since the beginning of the year versus the S&P 500's gain of 27.3%.
Read the original article here
Jabil (JBL - Free Report) came out with quarterly earnings of $1.05 per share, beating the Zacks Consensus Estimate of $0.94 per share. This compares to earnings of $0.90 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 11.70%. A quarter ago, it was expected that this electronics manufacturer would post earnings of $0.86 per share when it actually produced earnings of $0.88, delivering a surprise of 2.33%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times. Jabil, which belongs to the Zacks Electronics - Manufacturing Services industry, posted revenues of $7.51 billion for the quarter ended November 2019, surpassing the Zacks Consensus Estimate by 7.88%. This compares to year-ago revenues of $6.51 billion. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Jabil shares have added about 63.9% since the beginning of the year versus the S&P 500's gain of 27.3%.
Read the original article here
Jabil's (NYSE: JBL) latest stock valuation
So based on the earnings report of Jabil (NYSE: JBL) and the latest earnings guidance provided what do we value Jabil (JBL) stock at? Based on their latest earnings report our target (full value) price for Jabil at $43.70 a stock. We therefore believe the stock of Jabil is close to being fully valued
We usually suggest long term fundamental and value investors look to enter the stock at least 10% below our target price, which in this case is $43.70 Therefore we believe the a good entry point into the stock is below $39.30. We believe the stock of Jabil will trade around its current levels in coming weeks and months as it is close to our target price (full value price).
We usually suggest long term fundamental and value investors look to enter the stock at least 10% below our target price, which in this case is $43.70 Therefore we believe the a good entry point into the stock is below $39.30. We believe the stock of Jabil will trade around its current levels in coming weeks and months as it is close to our target price (full value price).
Next earnings release of Jabil
It is expected that Jabil will release their 2nd quarter 2020 earnings report in early March 2020