"The company attributed its strong performance to outperformance in key end-markets like cloud, data center infrastructure, and capital equipment. However, Jabil noted softness in areas such as electric vehicles, renewables, and 5G."
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Jabil stock rises as Q3 earnings top estimates, guidance raised
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Sam Boughedda
Tue, June 17, 2025 at 6:39 AM MDT 1 min read
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Investing.com -- Jabil Inc. shares jumped 5.05% after the electronics manufacturing services company reported better-than-expected third quarter results and raised its full-year outlook.
For the third quarter ended May 31, Jabil posted adjusted earnings per share of $2.55, surpassing analyst estimates of $2.29. Revenue climbed to $7.8 billion, exceeding the $7.03 billion consensus forecast and rising from $7.4 billion in the same quarter last year.
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The company attributed its strong performance to outperformance in key end-markets like cloud, data center infrastructure, and capital equipment. However, Jabil noted softness in areas such as electric vehicles, renewables, and 5G.
"Our Intelligent Infrastructure segment remains a critical growth engine, benefiting from accelerating AI-driven demand," said CEO Mike Dastoor in a statement.
Looking ahead, Jabil provided fourth quarter guidance, forecasting adjusted EPS of $2.64 to $3.04. Q4 revenue is projected between $7.1 billion to $7.8 billion.
Jabil raised its fiscal 2025 outlook, now expecting core earnings per share of $9.33 and revenue of $29 billion. The company aims to generate over $1.2 billion in adjusted free cash flow for the full year.
"We remain focused on enhancing core margins, optimizing cash flow, and returning value to shareholders—primarily through share repurchases and targeted investments in higher-margin opportunities," Dastoor added.
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Jabil (JBL) Q3 Earnings and Revenues Surpass Estimates
Zacks Equity Research
Tue, June 17, 2025 at 6:55 AM MDT 3 min read
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Jabil (JBL) came out with quarterly earnings of $2.55 per share, beating the Zacks Consensus Estimate of $2.33 per share. This compares to earnings of $1.89 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 9.44%. A quarter ago, it was expected that this electronics manufacturer would post earnings of $1.81 per share when it actually produced earnings of $1.94, delivering a surprise of 7.18%.
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 $7.83 billion for the quarter ended May 2025, surpassing the Zacks Consensus Estimate by 10.55%. This compares to year-ago revenues of $6.77 billion. The company has topped consensus revenue estimates four 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 25.7% since the beginning of the year versus the S&P 500's gain of 2.6%.
What's Next for Jabil?While Jabil has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Jabil: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $2.73 on $7.12 billion in revenues for the coming quarter and $8.93 on $27.82 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Electronics - Manufacturing Services is currently in the bottom 27% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Cambium (CMBM), another stock in the broader Zacks Computer and Technology sector, has yet to report results for the quarter ended March 2025.
This company is expected to post quarterly loss of $0.11 per share in its upcoming report, which represents a year-over-year change of +76.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Cambium's revenues are expected to be $53.9 million, up 27.3% from the year-ago quarter.
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This article originally published on Zacks Investment Research (zacks.com).
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