Jabil Reports Q1 FY2023 Revenue Decline, Net Income Increase of 12.5%
January 3, 2023
Earnings report
Jabil Inc ($NYSE:JBL). is a global supply chain solutions company providing comprehensive services in manufacturing, design, product management and repair solutions. On December 15, 2022, Jabil Inc. reported its financial results for the first quarter of FY2023, ending November 30 2022. Total revenue for the quarter was USD 223.0 million, a decrease of 7.5% from the same period the previous year.
However, the company’s net income was USD 9635.0 million, representing an increase of 12.5% year over year. The increase in net income was mainly driven by cost reduction initiatives, improved efficiency, and a favorable product mix. Looking ahead, Jabil Inc. is confident that its focus on cost reduction initiatives, improved efficiency, and a favorable product mix will continue to drive growth in future quarters. The company is also actively investing in new technologies and capabilities that will help it remain competitive in the long term. With its strong financial position and outlook for continued growth, Jabil Inc. is well positioned for success.
Price History
On Thursday, JABIL INC, a global electronics manufacturing services provider, reported its first quarter financial results for FY2023. This increase was primarily attributed to improved operational performance and cost restructuring initiatives that were put in place during the quarter. Despite the positive results, JABIL INC shares opened at $71.3 and closed at $68.4, resulting in a drop of 5.9% from the previous closing price of 72.6.
Overall, JABIL INC reported a revenue decline but managed to increase its net income through cost restructuring initiatives and improved operational performance. Although the stock closed lower on Thursday, investors remain hopeful that the company will continue to deliver positive results in the coming quarters, as it remains well positioned to capitalize on the growing demand for electronics manufacturing services. 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 is a company with strong fundamentals that reflect its long term potential. Its health score on the VI Star Chart is 8/10, indicating that the company has a strong cashflow and debt position and is capable of riding out any crisis without the risk of bankruptcy. In terms of other metrics, JABIL INC has strong growth and medium asset, dividend and profitability scores. Based on these metrics, it is classified as a ‘cheetah’ – a type of company that achieved high revenue or earnings growth but is considered less stable due to lower profitability. Investors looking for higher growth potential in their investments may be interested in JABIL INC due to its strong growth score, despite the fact that it may be more prone to volatility than other types of companies. Those seeking more stability may be put off by the lower profitability score, though the high health score indicates that JABIL INC is well-positioned to weather any storms. Ultimately, those interested in investing in JABIL INC should carefully consider its risk/reward profile before making any decisions. 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 can be a wise decision for investors seeking long-term growth potential. Despite the 7.5% decrease in total revenue for the first quarter of FY2023, net income was up 12.5% year-over-year. This indicates that the company is still growing and is well-positioned to succeed in the future. JABIL INC also offers a great dividend yield, which is currently around 2%. This means that investors can benefit from a steady stream of income while they wait for their investments to appreciate.
Additionally, JABIL INC has a strong balance sheet and a history of sound financial management which gives it an edge over its competitors. Moreover, JABIL INC is investing in cutting-edge technologies to remain competitive in the market. The company has recently developed new products such as machine vision and autonomous robots that are helping it stay ahead of the competition. Overall, JABIL INC is a good investment for those looking for long-term growth potential. Despite the short-term dip in stock price, investors should focus on the long-term growth prospects of the company, which should provide them with good returns over time.
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