Jabil Inc. JBL stock on Tuesday gained after reporting third-quarter results that exceeded analyst expectations for both earnings per share and sales.
This positive performance was further bolstered by an optimistic outlook for the upcoming quarter and fiscal year 2025, and a significant investment announcement for expanding its footprint in the Southeast United States, specifically to support cloud and AI data center infrastructure customers.
The company reported quarterly adjusted earnings per share of $2.55, beating the analyst consensus estimate of $2.31. Quarterly sales of $7.83 billion outpaced the analyst consensus estimate of $7.06 billion.
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Regulated Industries revenue grew at a flat rate year over year (Y/Y), Intelligent Infrastructure revenue grew by 51% Y/Y, and Connected Living & Digital Commerce revenue increased by 7% Y/Y.
The company exited the quarter with cash and equivalents worth $1.52 billion.
Jabil’s core EBITDA as of quarter end was $571 million, up from $513 million a year ago.
CEO Mike Dastoor said its Intelligent Infrastructure segment remains a critical growth engine, benefiting from accelerating AI-driven demand. Despite softness in areas like EVs, Renewables, and 5G, the diversified portfolio helped it track toward record core earnings per share.
Outlook
For the fourth quarter, the company projects net revenues of $7.10 billion to $7.80 billion versus a consensus of $7.19 billion. The company anticipates an adjusted EPS of $2.64-$3.04 versus a consensus of $2.74.
In the fourth quarter, the company anticipates segment revenues of: $2.9 billion for Regulated Industries, $3.3 billion for Intelligent Infrastructure, and $1.3 billion for Connected Living & Digital Commerce.
For fiscal 2025, Jabil expects revenues to be $29.0 billion versus a consensus of $28.0 billion, up from the prior view of $27.9 billion. The company anticipates an adjusted EPS $9.33 versus a consensus of $8.97, up from the previous view of $8.95.
New Investment
Jabil announced an investment of approximately $500 million over the next several years to expand its footprint in the Southeast United States. This expansion aims to support cloud and AI data center infrastructure customers by enabling new large-scale manufacturing capabilities, capital investments, and workforce development.
The company is in the final stages of site selection, with operations expected to begin by mid-2026. This move is driven by the increasing demand for hardware to power AI innovation domestically, which Jabil views as crucial for national security.
Price Action: JBL shares are trading higher by 3.15% to $186.51 premarket at last check Tuesday.
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