Earnings Preview: What to Expect From Jabil's Report

Saint Petersburg, Florida-based Jabil Inc. (JBL) is a trusted partner for the world's top brands, offering comprehensive engineering, manufacturing, and supply chain solutions. With a market cap of $14.2 billion, it operates through Electronics Manufacturing Services and Diversified Manufacturing Services segments. It is expected to release its Q1 earnings on Thursday, Dec. 12.

Ahead of the event, analysts expect Jabil to report a profit of $1.77 per share, down 23.7% from $2.32 per share reported in the year-ago quarter. The company has surpassed Wall Street’s earnings estimates in three of the past four quarters while missing on one other occasion. Its adjusted EPS for the last reported quarter declined 8.1% year-over-year to $2.15 while exceeding the consensus estimates by 1.4%.

For fiscal 2025, analysts expect Jabil to report an adjusted EPS of $7.84, down 7.7% from $8.49 in fiscal 2024. However, in fiscal 2026, its adjusted EPS is expected to grow 14.7% year-over-year to $8.99.

JBL stock prices have dropped 2% on a YTD basis, substantially underperforming the S&P 500 Index’s ($SPX) 22.3% gains and the Technology Select Sector SPDR Fund’s (XLK) 21.2% returns during the same time frame.

JBL stock prices soared 11.7% after the release of its fiscal 2024 earnings on Sep. 26. The company went through a substantial transformation in 2024, it sold its Mobility business, and observed growth in the AI data center sector while facing challenges in multiple end-markets. Despite these challenges, the company reported a non-GAAP core operating margin expansion of 50 basis points to 5.5%, which translated into a core operating income of $1.6 billion for the year. As per Jabil’s guidance, its full-year adjusted EPS is expected to grow 1.9% year-over-year reaching $8.65 while its adjusted free cash flow is expected to grow from $1.1 billion in 2024 to $1.2 billion in the current year.

The consensus opinion on JBL stock is bullish, with an overall “Strong Buy” rating. Of the eight analysts covering the stock, six recommend “Strong Buy” and two advise a “Hold” rating. The mean price target of $145 suggests a potential upside of 16.1% from current price levels.

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On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

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