JABIL INC Reports Record Fourth Quarter Earnings for Fiscal Year 2023
September 29, 2023
🌥️Earnings Overview
On August 31, 2023, JABIL INC ($NYSE:JBL) released their earnings report for the fourth quarter of fiscal year 2023, which revealed total revenue of USD 8458.0 million, a 6.3% drop from the same quarter the previous year. Net income was also reported to be USD 155.0 million, a decrease of 50.8% compared to the same quarter the previous year.
Market Price
The company’s stock opened at $111.6 and closed at $125.0, representing an 18.8% increase from its previous closing price of 105.2. This marked a new all-time high for the company. The impressive performance was due to strong results in the manufacturing services and electronics components segments of the business. The strong performance of these two segments enabled JABIL to report its highest yearly net income ever.
This was driven by the company’s focus on cost optimization, efficient supply chain management, and prudent capital allocation. Investors responded positively to the news, as evidenced by the 18.8% increase in share price. JABIL’s management team and board of directors have expressed confidence that the company can continue to deliver strong financial results in the future. 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 |
| 34.7k | 818 | 2.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Jabil Inc. More…
| Operations | Investing | Financing |
| 1.73k | -723 | -680 |
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 |
| 19.42k | 16.56k | 21.9 |
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 |
| 8.4% | 34.4% | 4.6% |
| FCF Margin | ROE | ROA |
| 2.0% | 35.6% | 5.1% |
Analysis
At GoodWhale, we conducted an analysis of JABIL INC‘s wellbeing. Our Star Chart revealed that JABIL INC has a high health score of 8/10 when it comes to its cashflows and debt, indicating that it is capable to sustain future operations in times of crisis. JABIL INC is also strong in growth and medium in asset, dividend, and profitability. Based on this analysis, we classified JABIL INC as a ‘gorilla’, a type of company that has achieved stable and high revenue or earning growth due to its strong competitive advantage. Given its strong competitive advantage, JABIL INC is an attractive option for investors looking for stable returns. Long-term investors may be particularly interested in the company, given its ability to maintain a steady stream of income. Meanwhile, growth-oriented investors may also be interested in the company due to its medium scores in asset and dividend profitability. All in all, JABIL INC is well-positioned for investors of various types and risk profiles. More…
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
Investors reacted positively to JABIL INC‘s fourth quarter earnings report, with the company’s stock price increasing on the day of the announcement. Despite total revenue falling by 6.3%, net income was still down 50.8% from the same quarter the previous year. Investors are likely taking into consideration the company’s strong long-term performance and its continued commitment to growth despite a challenging economic climate. With Jabil continuing to invest in new initiatives, investors should keep an eye on the company as it works to turn around its current financial situation.
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