Jabil (JBL) stock is trading notably higher Wednesday after the electronics manufacturing company beat top- and bottom-line expectations for its fiscal 2025 first quarter and raised its full-year outlook.
In the three months ending November 30, Jabil's revenue decreased 16.6% year over year to $7 billion. Its earnings per share (EPS) were down 23.1% from the year-ago period to $2.00.
"I am very pleased with our first fiscal-quarter results, which came in stronger than we anticipated driven by incremental strength in our Cloud, Data Center Infrastructure, and Digital Commerce end-markets," said Jabil CEO Mike Dastoor in a statement. "As a result, the team was able to deliver strong core EPS and cash flow generation during the quarter."
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The results handily beat analysts' expectations. Wall Street was anticipating revenue of $6.6 billion and earnings of $1.88 per share, according to S&P Global Market Intelligence.
Following its performance in the first quarter, Jabil raised its outlook for the full fiscal year. The company now expects to achieve revenue of approximately $27.3 billion, up from its previous forecast for revenue of $27 billion. It also anticipates earnings of roughly $8.75 per share, up from its prior outlook for earnings of $8.65 per share. Analysts were forecasting revenue of $27 billion and earnings of $8.69 per share.
For its fiscal second quarter, Jabil said it expects revenue in the range of $6.1 billion to $6.7 billion and EPS of $1.60 to $2.00. The midpoints of these ranges came in ahead of analysts' forecasts for revenue of $6.3 billion and earnings of $1.79 per share.
Is Jabil stock a buy, sell or hold?
Jabil has lagged the broader market in 2024, up roughly 16% for the year to date vs the S&P 500's 27% gain. Still, Wall Street has kept the faith in the tech stock.
According to S&P Global Market Intelligence, the average analyst target price for JBL stock is $147.25, roughly inline with current levels. Meanwhile, the consensus recommendation is Buy. Analysts may very well hike their price targets following the strong earnings release and upwardly revised outlook.
Financial services firm Stifel is one of those with a Buy rating on the large-cap stock, along with a $150 price target.
Jabil has lagged its electronics manufacturing services peers due to "demand headwinds across a number of top customers and an internal management shakeup," wrote Stifel analyst Matthew Sheerin in a December 9 note. "But we expect Jabil to see growth accelerate and margins expand into fiscal 2026 on continued strength in cloud infrastructure demand and a recovery in broader industrial markets."
Related Content
-
Gen X? Challenges Lie Ahead as Retirement NearsTapping home equity and working longer are key strategies that can help overcome a savings shortfall.
-
How Grandparents Can Help with Education ExpensesBefore paying for your grandkids' education, it's important to consider how to help them without risking your own retirement. Here are 10 things to think about.
-
I'm a Financial Pro: Why You Shouldn't Put All Your Eggs in the Company Stock BasketLimit exposure to your employer's stock, sell it periodically and maintain portfolio diversification to protect your wealth from unexpected events.
-
How Will the One Big Beautiful Bill Shape Your Legacy?The One Big Beautiful Bill Act removes uncertainty over tax brackets and estate tax. Families should take time to review estate plans to take full advantage.
-
Nvidia Earnings: Live Updates and Commentary August 2025Nvidia's earnings event is just days away, and market participants are zeroed in on the AI bellwether's quarterly results.
-
Should You Claim Social Security Early or Late? A Financial Adviser Weighs InThere isn't a wrong age to start claiming Social Security, but there are factors that everyone should consider to avoid leaving money on the table.
-
Three Things Financially Confident People Do, From a Pro Who KnowsIf you have any worries about your retirement future, take back control with these three tips.
-
How Much Do I Need to Retire? A Financial Professional Breaks Down Your OptionsWhat it all boils down to is will you be comfortable in retirement? Some people may rely on formulas, while others just aim for $1 million nest egg.
-
Despite Our Grumbles, America Still Delivers on the Dream: Perspective From a Financial Pro Who's Seen StuffSome of us might complain about the state of our nation (and those concerns are legit), but America still offers unparalleled opportunities and mobility that many people around the world only dream about.
-
Dow Rips 846 Points to New All-Time High: Stock Market TodayFed Chair Jerome Powell seems ready to cut interest rates in the fall but will still rely on incoming economic data about inflation and employment.
