Aggressive · Stocks to Consider and Updates

Jabil Posts Strong Results; Lifts Full-Year Guidance

Shares of contract electronics manufacturer Jabil, Inc. (NYSE: JBL – $42.68) are trading higher by about 5% on better-than-expected fiscal first-quarter financial results and an updated outlook for the full fiscal year ending in August 2020. Revenue for the period was $7.5 billion, up 15.4% from a year earlier, and above the previous guidance range of $6.65 billion to $7.35 billion. Wall Street consensus had been $6.95 billion. The Diversified Manufacturing Services unit year-on-year revenue growth climbed 3% and the Electronics Manufacturing Services segment grew 26%.The company posted adjusted earnings of $1.05 a share, ahead of the company’s guidance range of $0.82 to $1.04 a share. Street consensus had been $0.94. For the second quarter, the company projects revenue of $6 billion to $6.7 billion, and core earnings per share of $0.62 to $0.82, well ahead of analyst consensus of $6.2 billion and 71 cents. For the full year, the company now sees revenue of $26.7 billion and profit of $3.45 to $3.60 a share.     

       Shares have risen 86% over the past 52-weeks to a new 19-year high. Even so, they hold an inexpensive valuation of about 12 times estimated 2020 earnings, and long-term capital appreciation potential appears above average.

 

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