|
Related Topics
|
Category: Stock Market and Jabil
Date: 25 September 2019 Stock Price: $34.88 We take a look at the 4th quarter earnings release of their 2019 fiscal year of Jabil a company that provides comprehensive design, manufacturing, supply chain and product management services.
|
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: $6.57 billion (up from $5.77 billion from the same quarter of the previous year)
- Revenue increased by 13.9% over the last 12 months
- Cost of revenue: $6.078 billion (up from $5.239 billion for the same quarter of the previous year)
- Cost of revenues increased by 16% over the last 12 months
- Net income: $53.761 million (up from a loss of -$56 million for the same quarter of the previous year)
- Diluted income per share: $0.34 (up from a loss of -$0.34 for the same quarter of the previous year)
- Diluted weighted-average shares outstanding: 156.981 million (down from 166.986 million for the same quarter of the previous year)
- Cash and cash equivalents: $1.163 billion
- Cash and cash equivalents per share: $7.45
- Cash and cash equivalents makes up 21.% of Jabil's market capital
- Cash and cash equivalents makes up 8.96% of Jabil's total assets
- Inventories : $3.023 billion
- Inventories makes up 23.3% of Jabil's total assets
- Accounts receivable: $2.745 billion
- Accounts receivable makes up 21.16% of Jabil's total assets
- Stockholders equity of Jabil's: $1.9 billion
- Stockholders equity per share: $12.10
- Jabil is trading at 2.88 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 (for full fiscal year): $289.4 million
- Cash generated from operations per share for the full fiscal year: $1.84
Jabil's management commentary on the results and earnings guidance
ST. PETERSBURG, Fla. – September 24, 2019 –Today, Jabil Inc. (NYSE: JBL), reported preliminary, unaudited financial results for its fourth quarter and fiscal year ended August 31, 2019
"I’m thrilled with our FY19 results, highlighted by outstanding operational execution, strong free cash flow generation and double-digit core EPS growth," said CEO Mark Mondello. "As expected, our revenue was driven higher by targeted endmarkets in the areas of 5G, cloud, energy and healthcare. Looking ahead, we expect the positive momentum to continue as we remain committed to driving margin expansion and delivering strong cash flows, derived from a well-balanced stream of revenue," added Mondello.
First Quarter of Fiscal Year 2020 Outlook:
• Net revenue: $6.65 billion to $7.35 billion
• U.S. GAAP operating income: $128 million to $206 million
• U.S. GAAP diluted earnings per share: $0.14 to $0.58 per diluted share
• Core operating income (Non-GAAP): $235 million to $285 million
• Core diluted earnings per share (Non-GAAP): $0.82 to $1.04 per diluted share
• Diversified Manufacturing Services revenue: Increase 3 percent year-on-year
• Electronics Manufacturing Services revenue: Increase 11 percent year-on-year
Capital Return Update:
As part of a two-year capital allocation framework, Jabil’s Board of Directors has authorized a share repurchase program of up to $600 million in Company common stock. The shares will be repurchased from time-to-time through various methods, including open market repurchases, at the Company's discretion and subject to market conditions and other factors.
"I’m thrilled with our FY19 results, highlighted by outstanding operational execution, strong free cash flow generation and double-digit core EPS growth," said CEO Mark Mondello. "As expected, our revenue was driven higher by targeted endmarkets in the areas of 5G, cloud, energy and healthcare. Looking ahead, we expect the positive momentum to continue as we remain committed to driving margin expansion and delivering strong cash flows, derived from a well-balanced stream of revenue," added Mondello.
First Quarter of Fiscal Year 2020 Outlook:
• Net revenue: $6.65 billion to $7.35 billion
• U.S. GAAP operating income: $128 million to $206 million
• U.S. GAAP diluted earnings per share: $0.14 to $0.58 per diluted share
• Core operating income (Non-GAAP): $235 million to $285 million
• Core diluted earnings per share (Non-GAAP): $0.82 to $1.04 per diluted share
• Diversified Manufacturing Services revenue: Increase 3 percent year-on-year
• Electronics Manufacturing Services revenue: Increase 11 percent year-on-year
Capital Return Update:
As part of a two-year capital allocation framework, Jabil’s Board of Directors has authorized a share repurchase program of up to $600 million in Company common stock. The shares will be repurchased from time-to-time through various methods, including open market repurchases, at the Company's discretion and subject to market conditions and other factors.
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 $20.60 a stock, and its currently it's trading at $34.88. Thats a decent return of 69% provided over the last 5 years. The stock is also trading at a lot closer to its 52 week high of $34.90 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) reported fourth-quarter fiscal 2019 earnings of 88 cents per share, which beat the Zacks Consensus Estimate by a couple of cents and improved 25.7% year over year. The earnings figure was within management’s guided range of 76-96 cents per share on a non-GAAP basis. Jabil incurred a one-time charge of $6.2 million due to a distressed customer in the networking space. Moreover, the company exchanged $50 million of iQor preferred stock associated with its divestiture of the aftermarket services business in 2014. The exchange resulted in a one-time net non-cash charge of $29.6 million.
Revenues increased 13.9% year over year to $6.57 billion, which was within management’s guided range of $6.3-$6.9 billion. However, the figure lagged the Zacks Consensus Estimate of $6.61 billion.
Quarter Details
Electronics Manufacturing Services (EMS) revenues accounted for 63% of total revenues and increased 23% year over year to $4 billion, driven by strength in cloud, 5G/wireless, energy and automotive end markets.
Read the original article here
Jabil (JBL - Free Report) reported fourth-quarter fiscal 2019 earnings of 88 cents per share, which beat the Zacks Consensus Estimate by a couple of cents and improved 25.7% year over year. The earnings figure was within management’s guided range of 76-96 cents per share on a non-GAAP basis. Jabil incurred a one-time charge of $6.2 million due to a distressed customer in the networking space. Moreover, the company exchanged $50 million of iQor preferred stock associated with its divestiture of the aftermarket services business in 2014. The exchange resulted in a one-time net non-cash charge of $29.6 million.
Revenues increased 13.9% year over year to $6.57 billion, which was within management’s guided range of $6.3-$6.9 billion. However, the figure lagged the Zacks Consensus Estimate of $6.61 billion.
Quarter Details
Electronics Manufacturing Services (EMS) revenues accounted for 63% of total revenues and increased 23% year over year to $4 billion, driven by strength in cloud, 5G/wireless, energy and automotive end markets.
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 $30.30 a stock. We therefore believe the stock of Jabil is overvalued
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 $30.30 Therefore we believe the a good entry point into the stock is below $26.70. We believe the stock of Jabil will pull back from current levels to levels closer to our valuation levels in coming weeks and months.
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 $30.30 Therefore we believe the a good entry point into the stock is below $26.70. We believe the stock of Jabil will pull back from current levels to levels closer to our valuation levels in coming weeks and months.