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Saint Petersburg, Florida-based Jabil Inc. (JBL) provides electronic manufacturing services and solutions and operates in two segments: Electronics Manufacturing Services (EMS) and Diversified Manufacturing Services (DMS). Valued at a market cap of almost $18.6 billion, the company’s largest customers include Apple, Cisco, Hewlett-Packard Company, and Keysight Technologies, to name a few.
This electronic components manufacturer's shares have slightly outpaced the broader market over the past 52 weeks. Jabil has soared 22.7% over this time frame, while the broader S&P 500 Index ($SPX) has gained 22.5%. Moreover, the stock is up 18.1% on a YTD basis, compared to SPX’s 4.2% rise during the same time frame.
Zooming in further, Jabil’s outperformance becomes more evident when compared to the Technology Select Sector SPDR Fund’s (XLK) 19.5% return over the past 52 weeks and nearly 4.2% gain on a YTD basis.
On Dec. 18, shares of JBL soared 7.3% after its better-than-expected Q1 earnings release. The company reported adjusted earnings of $2 per share, which declined 23.1% from the year-ago quarter but surpassed the Street’s expectations by a notable margin of 7%. Moreover, its revenue fell 16.7% year-over-year to $7 billion but still outpaced the forecasted figure by 5.9%.
Strong demand in its data center infrastructure, cloud, and digital commerce end markets aided the results. However, weakness in certain end markets, stiff competition, and macroeconomic challenges led to its top and bottom-line decline. Adding to the positives, Jabil raised its fiscal 2025 outlook, now projecting adjusted EPS of $8.75 and revenue of $27.3 billion, further boosting investor confidence.
For the current fiscal year, ending in August, analysts expect Jabil’s EPS to decline 5.2% year over year to $8.05. The company’s earnings surprise history is mixed. It surpassed the Wall Street estimates in three of the last four quarters while missing on another occasion.
Among the eight analysts covering the stock, the consensus rating is a “Strong Buy,” which is based on six “Strong Buy” and two “Hold” ratings.
This configuration is slightly less bullish than three months ago, with seven analysts suggesting a “Strong Buy” rating.
On Jan. 21, BofA maintained a “Buy” rating on Jabil and raised its price target to $180, which indicates a 5.9% potential upside from the current levels.
The mean price target of $172.71 represents a slight 1.6% upside from JBL’s current price levels, while the Street-high price target of $188 suggests an upside potential of 10.6%.
