Core Viewpoint - Jabil, Inc. is set to report its fourth-quarter fiscal 2025 earnings on September 25, with sales estimated at $7.6 billion and earnings per share (EPS) at $2.95, reflecting slight upward adjustments for 2025 and downward adjustments for 2026 in earnings estimates [1][6]. Earnings Performance - Jabil has a strong earnings surprise history, exceeding expectations in the last four quarters with an average surprise of 6.68% [2]. Earnings Prediction - Current analysis indicates that Jabil may not achieve an earnings beat for the fourth quarter, with an Earnings Surprise Prediction (ESP) of +5.94% and a Zacks Rank of 4 [3]. Factors Influencing Results - Jabil plans to invest $500 million to expand its AI data center infrastructure, which is expected to enhance its manufacturing capabilities and workforce development [6][7]. - The localization of production facilities aims to align manufacturing with regional demand and mitigate risks from geopolitical volatility and tariffs [8]. Segment Performance - The Regulated Industries segment is projected to see revenues of $2.9 billion, down from $3 billion year-over-year, primarily due to weak demand in the electric vehicle market [9]. - The Connected Living & Digital Commerce segment is expected to generate $1.31 billion in revenue, a decrease from $1.44 billion [10]. - The Intelligent Infrastructure segment anticipates revenues of $3.52 billion, showing growth from $2.27 billion [10]. Stock Performance - Over the past year, Jabil's stock has increased by 95.8%, underperforming the industry growth of 141.8% but outperforming Flex Ltd. [11]. Valuation Metrics - Jabil's shares are trading at a forward price/earnings ratio of 20.02, which is lower than the industry average of 25.4 but above its historical mean of 17.91 [12]. Investment Considerations - The company's growth is hindered by demand softness across multiple markets, particularly in renewable energy and 5G sectors, as well as fluctuating demand in the electric vehicle market [15]. - Jabil faces stiff competition from industry leaders and challenges related to customer manufacturing preferences, which could impact net sales growth [16]. - Supply chain issues and rising costs due to local production initiatives may lead to margin pressures in the near term [17]. - Overall, Jabil's growth prospects are affected by weak demand in key segments, competitive pressures, and macroeconomic challenges [18].

Core Viewpoint - Jabil Inc. is expected to report strong quarterly earnings, with Wall Street anticipating an EPS of $2.95 and revenue of approximately $7.65 billion on September 25, 2025, reflecting a positive outlook based on its history of exceeding earnings estimates [1][6]. Financial Performance - Jabil's earnings are projected to show a year-over-year increase, driven by higher revenues for the quarter ending August 2025, with an average outperformance of 8.31% over the last two quarters [2]. - The company's price-to-earnings (P/E) ratio is approximately 42.65, indicating a high market valuation of its earnings [4][6]. - The price-to-sales ratio stands at about 0.84, suggesting investor willingness to pay per dollar of sales [4][6]. - Jabil's enterprise value to sales ratio is around 0.90, reflecting its total valuation relative to sales [4]. - The debt-to-equity ratio is approximately 2.59, indicating a significant level of debt relative to equity [5][6]. - The current ratio is around 0.98, suggesting Jabil's ability to cover short-term liabilities with short-term assets [5]. Market Reaction - The actual impact on Jabil's stock price will depend on the comparison of reported figures to estimates, with potential upward movement if expectations are surpassed, or a decline if they are missed [3].

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Jabil, with a focus on how actual results compare to estimates, which could significantly impact the stock price [1][2]. Earnings Expectations - Jabil is expected to report quarterly earnings of $2.95 per share, reflecting a year-over-year increase of +28.3%, with revenues projected at $7.66 billion, up 10.1% from the previous year [3]. - The earnings report is scheduled for release on September 25, and better-than-expected results could lead to a stock price increase, while disappointing results may cause a decline [2]. Estimate Revisions - The consensus EPS estimate has been revised down by 0.9% over the last 30 days, indicating a reassessment by analysts [4]. - A positive Earnings ESP of +5.94% suggests that analysts have recently become more optimistic about Jabil's earnings prospects, despite the stock holding a Zacks Rank of 4, which complicates predictions of an earnings beat [12]. Earnings Surprise History - Jabil has a history of beating consensus EPS estimates, having exceeded expectations in the last reported quarter by +9.44% [13]. - Over the last four quarters, Jabil has successfully beaten consensus EPS estimates each time [14]. Conclusion - While Jabil does not appear to be a strong candidate for an earnings beat, investors should consider other factors when making decisions regarding the stock ahead of the earnings release [17].

Group 1 - Jabil (JBL) is currently trading below its 50-day moving average and is set to release its fourth-quarter results on September 25 [1] - The stock is in a consolidation pattern with a buy point identified at 232.84, indicating potential for upward movement [1] - Jabil is recognized as a significant player in the artificial intelligence sector, with expectations of a 50% surge in its data center business due to the AI boom [4] Group 2 - Jabil operates in over 25 countries, focusing on the design, development, and manufacturing of electronic products [1] - The company has been included in IBD's lists of top-rated growth stocks, highlighting its strong market position [1][4] - The stock is currently featured as IBD Stock of the Day, reflecting its prominence in the market [4]

Group 1 - Jabil Inc. (NYSE:JBL) is recognized for its consistent stock repurchases, with a rate of 5% annually, and is noted for its strong performance in the tech and healthcare contract manufacturing sectors [1] - The company is currently trading at 22 times earnings, indicating a potentially attractive valuation despite recent price increases [1] - Jabil provides a range of services including manufacturing, design, and product management, which positions it well to navigate tariff challenges and support clients in the current market environment [1] Group 2 - Competitor Celestica is performing exceptionally well, which may reflect positively on Jabil's market position and potential for growth [1] - There is a suggestion that certain AI stocks may present greater upside potential compared to Jabil, indicating a competitive landscape in the investment space [1]

Core Insights - Jabil Inc. (JBL) and Corning Incorporated (GLW) are prominent players in the technology manufacturing sector, with Jabil focusing on electronics manufacturing services and Corning specializing in glass substrates and optical solutions [1][2][3]. Jabil Inc. (JBL) - Jabil operates in 100 locations across 30 countries, benefiting from strong margins and cash flow dynamics, along with extensive end-market experience and technical capabilities [4][6]. - The company has a centralized procurement process and a connected factory network that enhances production scalability [5]. - Jabil's revenue is expected to grow due to demand in AI data centers, capital equipment, and warehouse automation, alongside the adoption of 5G and cloud computing [7]. - However, Jabil faces competition from various electronic manufacturers and geopolitical tensions, which may impact its margins [8]. - The Zacks Consensus Estimate for Jabil's 2025 sales and EPS indicates year-over-year increases of 0.9% and 10.6%, respectively, with EPS estimates trending upward [13]. Corning Incorporated (GLW) - Corning is experiencing improved demand driven by its innovations, particularly in fiber optic solutions, which are crucial for mobile devices and cloud computing [9][10]. - The company has reorganized its operating structure into five Market-Access Platforms to enhance efficiency and unlock synergies [11]. - Despite its strengths, Corning's revenue is heavily reliant on the Display and Optical segments, which are sensitive to consumer spending [12]. - The Zacks Consensus Estimate for Corning's 2025 sales and EPS suggests year-over-year increases of 11% and 25.5%, respectively, with EPS estimates also trending upward [15]. Comparative Analysis - Over the past year, Jabil's stock has increased by 105.8%, while Corning's has risen by 75.3% [16]. - Jabil's price/earnings ratio is 18.84, which is lower than Corning's 26.4, making Jabil appear more attractive from a valuation perspective [16]. - Both companies are expected to see improvements in sales and profits in 2025, but Corning's growth expectations are significantly higher [20].

Group 1 - Jabil, Inc. (JBL) has experienced a stock price increase of 97.9% over the past year, which is lower than the industry's growth of 127.8% and Celestica Inc.'s increase of 361.6% but higher than Flex Ltd.'s growth of 76.6% [1][8] - The company's strategy of end-market and product diversification is a significant growth catalyst, aiming to ensure that no single product or product family exceeds 5% of operating income or cash flows in any fiscal year [3][5] - Jabil's revenue growth is expected to be driven by strong demand in healthcare, cloud, retail, and industrial sectors, alongside the adoption of 5G wireless and cloud computing [4][9] Group 2 - Jabil has raised its 2025 revenue outlook to $29 billion and adjusted EPS to $9.33, with expectations of generating over $1.2 billion in adjusted free cash flow [8][9] - The company has restructured its internal operations to align more closely with specific end markets, aiming to develop domain-specific expertise and enhance responsiveness to market demands [6][15] - Jabil's collaboration with Intel on 800G silicon photonics modules positions it as a key player in the AI/ML ecosystem, promising high performance and reliability in data transmission [10][11] Group 3 - The Zacks Consensus Estimate for Jabil's 2025 earnings has increased by 8.7% to $9.39 per share, indicating positive market sentiment regarding the company's growth potential [12][17] - Jabil is well-positioned to capitalize on growth opportunities in AI data center hardware, power and energy infrastructure, and healthcare, supported by strong margins and robust free cash flow [15][16] - The company has a long-term earnings growth expectation of 16.6% and a trailing four-quarter average earnings surprise of 6.7%, reflecting its strong financial outlook [17]

Company Performance - Extreme Networks (EXTR) has shown a year-to-date performance increase of approximately 27.7%, significantly outperforming the Computer and Technology sector, which has returned an average of 12.9% [4] - The Zacks Consensus Estimate for EXTR's full-year earnings has increased by 6% over the past quarter, indicating improved analyst sentiment and a stronger earnings outlook [4] - Extreme Networks holds a Zacks Rank of 2 (Buy), suggesting it has favorable characteristics for outperforming the market in the near term [3] Industry Context - Extreme Networks is part of the Computer - Networking industry, which has seen an average gain of 16.6% this year, indicating that EXTR is performing better than its immediate industry peers [6] - The Computer and Technology group, which includes 605 companies, ranks 5 in the Zacks Sector Rank, reflecting the overall strength of this sector [2] - Jabil (JBL), another stock in the Computer and Technology sector, has returned 42.3% year-to-date and has a Zacks Rank of 2 (Buy), showcasing strong performance within the sector [5]

Core Insights - Jabil, Inc. (JBL) is expanding its portfolio to leverage the growing cloud and AI data-center infrastructure market, which is currently led by hyperscalers like Google, Amazon, and Microsoft [1][2] Group 1: Market Trends - The AI data center market is projected to grow from $13.62 billion in 2025 to $60.49 billion by 2030, reflecting a compound annual growth rate (CAGR) of 28.3% [3] - AI-as-a-service is gaining traction, prompting enterprises to utilize hyperscaler data centers for their AI needs due to their scalability, lower operating expenses, and high computational power [2] Group 2: Company Initiatives - Jabil is investing $500 million in a multi-year expansion of its manufacturing footprint in the Southeast U.S. to position itself as a key U.S.-based manufacturing partner for hyperscalers [3] - The acquisition of Mikros Technologies enhances Jabil's capabilities in liquid cooling and thermal management, while a partnership with Endeavour Energy LLC allows for on-demand data center capacity [4] Group 3: Financial Performance - Jabil anticipates generating $7.1 billion in revenues from the data center vertical in fiscal 2025, indicating a remarkable 54% year-over-year growth [5][9] - Jabil's stock has increased by 92.9% over the past year, although its forward P/E ratio of 18.94 is below the industry average of 22.18 [8][11] Group 4: Competitive Landscape - Jabil faces competition from Celestica, Inc. and Flex Ltd., both of which are also expanding their presence in the AI data center market [6][7] - Celestica is strengthening its position with industry-leading 400G and 800G switch products and collaborations with AMD and Broadcom [6]

Industry Overview - The electronics manufacturing services (EMS) industry provides design, engineering, and manufacturing services to electronics original equipment manufacturers (OEMs) and is currently ranked in the top 4% of the Zacks Industry Rank [1] - The industry has delivered a remarkable 102.8% return over the past year and a 48.7% year-to-date return, indicating strong performance and potential for continued outperformance in the next three to six months [2] Company Analysis: Celestica Inc. (CLS) - Celestica Inc. is a leading global EMS provider, offering a wide range of manufacturing and supply-chain solutions tailored to various customer needs [6] - The company is experiencing strong demand in the Connectivity & Cloud Solutions segment, particularly in its Hyperscaler Portfolio Solutions networking business and optical programs [7] - Celestica is well-positioned in the AI infrastructure market, projected to reach $223.45 billion by 2030, with a compound annual growth rate of 30.4% from 2024 to 2030 [8] - For 2025, the Zacks Consensus Estimate indicates revenues of $11.63 billion (up 20.6% year over year) and earnings per share of $5.55 (up 43% year over year) [11] - The short-term average price target for CLS shares suggests a potential increase of 13.3% from the last closing price of $181.34, with a maximum upside of 35.1% [13] Company Analysis: Jabil Inc. (JBL) - Jabil Inc. is a major global supplier of EMS solutions, providing design, production, product management, and after-market services across various industries [14] - The company is benefiting from strong momentum in capital equipment, AI-powered data center infrastructure, cloud, and digital commerce sectors [15] - Jabil plans to invest $500 million to enhance its manufacturing capabilities for the AI data center vertical, strengthening its position in the AI hardware supply chain [17] - For fiscal 2026, the Zacks Consensus Estimate shows revenues of $30.93 billion (up 6.1% year over year) and earnings per share of $11.05 (up 17.8% year over year) [22] - The short-term average price target for JBL shares indicates a potential increase of 14.5% from the last closing price of $204.05, with a maximum upside of 24.9% [23]