JABIL INC Reports Strong Earnings Growth in FY2023 Q1, Despite Year-on-Year Revenue Decline
December 26, 2022
Earnings report
Jabil Inc Intrinsic Value – On December 15 2022, JABIL INC ($NYSE:JBL) reported its results for the first quarter of FY2023, ending November 30 2022. JABIL Inc is a global electronics and manufacturing services provider, headquartered in St. Petersburg, Florida. They specialize in providing design, development and manufacturing services to some of the world’s largest companies. For the first quarter, JABIL achieved total revenue of USD 223.0 million, which was a 7.5% decrease year-on-year. Despite the decline in revenue, JABIL reported a 12.5% increase in net income, to USD 9635.0 million. This increase in net income was attributed to the company’s focus on cost reduction and efficiency initiatives, allowing them to maintain profitability despite the revenue decline.
In addition, JABIL reported solid performance in their core markets of consumer electronics and industrial products. These figures demonstrate JABIL’s ability to quickly adapt to changing market conditions and remain competitive in a challenging environment. Overall, JABIL’s first quarter results demonstrate their resilience in the face of a challenging business environment. Despite the decline in revenue year-on-year, the company was still able to deliver strong earnings growth due to their focus on cost reduction and efficiency initiatives. This positive result bodes well for JABIL’s future prospects, as they continue to develop new strategies to further drive growth and profitability.
Price History
On Thursday, JABIL INC reported strong earnings growth for the first quarter of FY2023, despite a year-on-year revenue decline. Despite this, the company’s stock opened at $71.3 and closed at $68.4, a drop of 5.9% from the previous closing price of 72.6. The company attributed the growth in net income to its strong cost management and efficiency initiatives. Despite this, the company’s stock price dropped on Thursday, indicating investor concerns about future performance. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Jabil Inc. More…
| Total Revenues | Net Income | Net Margin |
| 34.55k | 978 | 3.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Jabil Inc. More…
| Operations | Investing | Financing |
| 1.86k | -961 | -921 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Jabil Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 20.51k | 17.98k | 18.84 |
Key Ratios Snapshot
Some of the financial key ratios for Jabil Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 9.5% | 27.8% | 4.2% |
| FCF Margin | ROE | ROA |
| 1.3% | 36.1% | 4.4% |
VI Analysis – Jabil Inc Intrinsic Value
VI app has made it easier to analyze JABIL INC with its simple interface. According to the analysis done by VI Line, the fair value of JABIL INC share is around $60.5. Currently, JABIL INC stock is traded at $68.4, which is a fair price that is overvalued by 13%. This suggests that the stock could be overvalued and investors should be more cautious while investing in it. JABIL INC’s financial performance has been strong as revenue growth has increased year on year and its earnings per share grew significantly during the last quarter. Furthermore, the company has a healthy balance sheet with low debt levels and high liquidity. It also has a strong cash flow position and has made strategic investments in its core business. Overall, JABIL INC appears to be a solid company that is well-positioned for future growth. However, investors should be mindful of the current overvaluation of the stock and consider their investment choices carefully. More…
VI Peers
It is headquartered in St. Petersburg, Florida, and it has been in business since 1966. The company has more than 100,000 employees, and its revenue was $17.9 billion in 2017. Jabil Inc‘s main competitors are Flex Ltd, Venture Corp Ltd, and Suzhou Etron Technologies Co Ltd.
– Flex Ltd ($NASDAQ:FLEX)
Flex Ltd is a leading manufacturer of electronic components and assemblies. The company has a market capitalization of 7.97 billion as of 2022 and a return on equity of 18.46%. Flex Ltd is a diversified company that operates in a variety of industries, including automotive, consumer electronics, communications, computing, and industrial. The company has a strong global presence and is headquartered in Singapore. Flex Ltd is a publicly traded company on the Singapore Stock Exchange.
– Venture Corp Ltd ($SGX:V03)
Venture Corp Ltd is a Singapore-based company that provides electronic manufacturing services. The company has a market cap of 4.64B as of 2022 and a Return on Equity of 12.65%. The company’s primary businesses are in the areas of original design manufacturing, precision engineering, and electronics manufacturing services. The company also provides value-added services such as product development, assembly, and testing.
– Suzhou Etron Technologies Co Ltd ($SHSE:603380)
As of 2022, Suzhou Etron Technologies Co Ltd has a market cap of 4.81B and a Return on Equity of 13.48%. The company is engaged in the research, development, production and sales of optoelectronic products and solutions. The company’s products are used in a wide range of applications, including telecommunications, data communications, consumer electronics, automotive electronics, industrial electronics and medical electronics.
Summary
Investing in JABIL Inc (NYSE: JBL) requires an analysis of the company’s financial performance, market position, and future prospects. On December 15, 2022, JABIL Inc reported earnings results for FY2023 Q1, which ended on November 30, 2022. Total revenue for the quarter was USD 223.0 million, a 7.5% year-on-year decrease. Reported net income was USD 9635.0 million, up 12.5% year-on-year. Following the earnings announcement, the stock price moved down the same day. For investors looking to analyze JABIL Inc, it is important to consider the company’s financial performance relative to its peers in the industry and the broader market. While JABIL Inc’s revenue decreased 7.5% year-on-year, net income increased by 12.5%. This suggests that the company is managing its expenses well and is able to generate positive returns in spite of declining revenue. In addition to examining JABIL Inc’s financial performance, investors should also consider its market position and future prospects. Analyzing factors such as competitive landscape and customer trends can provide useful insights into the company’s long-term potential.
Additionally, tracking JABIL Inc’s stock price movements over time can help investors make informed decisions on when to buy and sell the stock. Overall, investing in JABIL Inc requires careful analysis of its financial performance, market position, and future prospects. Investors should also pay close attention to the company’s stock price movements over time in order to make informed decisions about when to buy and sell the stock.
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