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Jabil Posts Record First Quarter Results

Electronic manufacturing services and solutions company Jabil, Inc. (NYSE: JBL – $23.98) reported a profit of $124 million, as its efforts to diversify into new markets paid off. On an adjusted basis, the St. Petersburg, Florida-based company reported a profit of $0.90 a share, compared to expectations of $0.88 and 12 ½% above last year’s first quarter. Compared to a year ago, sales rose 17% to $6.51 billion and compared to analysts’ expectations of $6.1 billion. JBL’s Diversified Manufacturing Services unit year-on-year revenue growth was 10% and the Electronics Manufacturing Services business grew revenue 22% from last year. The company forecast sales of $5.8 billion to $6.4 billion in its second quarter that ends in February. Management expects to see growth in end-markets such as healthcare, automotive and 5G wireless to move revenue higher. Wall Street has second quarter adjusted earnings pegged at $0.61 and full-year fiscal 2019 at $2.99.

       Aggressive investors that have some patience may want to take a look here. Share repurchases and solid organic growth should lift share net above $4.00 over the next few years. Thus, the equity is inexpensively valued at about 8 times this year’s adjusted earnings and offers above-average long-term appreciation potential.

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