JABIL INC Reports Double-Digit Year-On-Year Increase in Net Income for FY2023 Q1
December 29, 2022
Earnings report
On December 15 2022, JABIL INC ($NYSE:JBL) reported earnings results for the first quarter of FY2023 ending November 30 2022. JABIL Inc is an American manufacturing and supply chain services company, headquartered in St. Petersburg, Florida. It provides electronic manufacturing services and supply chain solutions to companies around the world. For the first quarter, the company achieved total revenue of USD 223.0 million, down 7.5% year-on-year.
However, the company reported net income of USD 9635.0 million, up 12.5% year-on-year. This suggests that the company’s efforts to reduce costs and improve efficiency have been successful. This lower gross margin was mainly due to increased spending on raw materials and labor costs. This suggests that the company is managing its cash flow well and is in a strong financial position to invest in growth opportunities. Overall, JABIL INC reported a strong set of results for the first quarter of FY2023 with net income increasing by 12.5% year-on-year despite a 7.5% decline in revenue. The company’s cost-cutting and efficiency initiatives have paid off and its strong cash balance shows that it is in a good position to invest in growth opportunities.
Share Price
On Thursday, JABIL INC reported their financial results for the first quarter of fiscal year 2023. The results showed a double-digit year-on-year increase in net income. Despite this positive news, JABIL INC 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 its strong performance to the continued implementation of its strategic initiatives and an improved product mix, which drove higher profitability.
In addition, the company benefited from cost reductions and operational efficiencies, which helped it to remain profitable despite an uncertain global environment. The company stated that it plans to continue to invest in its core business and pursue additional opportunities for growth in the future. Overall, JABIL INC’s strong financial results for the first quarter of fiscal year 2023 were reflected in the stock market reaction, despite the drop in stock price on Thursday. With its focus on strategic initiatives and cost reductions, JABIL INC is well-positioned to continue its steady growth in the long run. 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
Company fundamentals are essential to understand the long-term potential of a business. By simplifying the analysis, the VI app can provide an easy and intuitive way to evaluate a company’s performance. JABIL INC’s Star Chart analysis shows it is strong in growth, and medium in asset, dividend, and profitability. The company also has a high health score of 8/10. This indicates JABIL INC is well-equipped to ride out any crisis without the risk of bankruptcy. JABIL INC is classified as a ‘cheetah’, meaning it has achieved high revenue or earnings growth but is considered less stable due to lower profitability. Therefore, investors looking for higher returns may be interested in such a company. Those who are more focused on stability may want to look elsewhere, or wait until the company demonstrates more consistent profitability. Investors should also consider other factors such as the current market conditions, industry outlook, and the company’s management before investing in JABIL INC. It’s important to stay informed and do thorough research to make sure the investment is right for you. 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
JABIL Inc. recently reported its first quarter earnings results for the fiscal year ending November 30, 2022. Total revenue was reported to be USD 223.0 million, down 7.5% year-on-year, with reported net income of USD 9635.0 million, up 12.5% year-on-year. Upon release of these figures, JABIL Inc.’s stock price moved down. For investors, JABIL Inc.’s disappointing revenue figures may be concerning as they indicate a potential lack of growth and indicate a weakened outlook for the company. The increase in net income is a positive sign, however, and could be indicative of cost-cutting initiatives by the company or increased efficiency of operations.
For investors interested in JABIL Inc., it is important to consider the company’s current financials and the overall market conditions when making investment decisions. Recent revenue numbers may suggest that the company is not experiencing the growth that investors may have expected, but the increase in net income could indicate that the company is generating more cash than it has in the past. Ultimately, investors should conduct their own due diligence and research before making any decisions regarding JABIL Inc. as an investment opportunity.
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