Jabil (JBL), a contract manufacturer of electronics and other products, on Thursday beat Wall Street’s targets for its fiscal third quarter and guided higher for the current period. JBL stock rose on the news.
The St. Petersburg, Fla.-based company earned an adjusted $1.30 a share on sales of $7.21 billion in the quarter ended May 31. Analysts expected Jabil earnings of $1.04 a share on sales of $6.95 billion. On a year-over-year basis, Jabil earnings soared 251% while sales increased 14%.
“Our third-quarter performance was outstanding,” Chief Executive Mark Mondello said in a news release. “The combination of strong demand and excellent execution by the team allowed us to deliver $277 million in core operating income on revenue of $7.2 billion.”
For the current quarter, Jabil expects to earn an adjusted $1.35 a share on sales of $7.6 billion. That’s based on the midpoint of its outlook for its fiscal fourth quarter. Wall Street had predicted Jabil earnings of $1.17 a share on sales of $6.95 billion. In the year-earlier period, Jabil earned 98 cents a share on sales of $7.3 billion.
JBL Stock Is On Two IBD Watchlists
On the stock market today, JBL stock rose 2.3% to 57.83. Earlier in the session, JBL stock notched a 21-year high of 58.95. It reached its all-time high of 68 in September 2000 during the dot-com bubble.
Jabil makes products for a host of industries including computing, communications, consumer electronics, automotive and health care.
After the earnings report, Raymond James analyst Adam Tindle reiterated his strong buy rating on JBL stock and raised his price target to 66 from 58.
Jabil is benefiting from its diversification efforts, he said. The company used to be heavily exposed to Apple (AAPL) business, but now has such marquee customers as Amazon.com (AMZN), Johnson & Johnson (JNJ) and Tesla (TSLA), he said.
JBL stock is on the IBD 50 and Leaderboard watchlists.
On March 11, JBL stock broke out of a flat base at a buy point of 46.28, according to IBD MarketSmith charts.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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