Jabil (JBL) Q2 Earnings Report Review

The history of Jabil Inc (NYSE:JBL) dates back to 1966 when James Golden and Bill Morean founded the company to manufacture and repair circuit board assemblies. The company kept offering its services to electronic manufacturers for several years. It went public in 1993 and diversified into new segments over the years. Jabil currently provides electronic design, manufacturing, and product management services. It serves a wide range of industries such as automotive, defense, aerospace, telecommunications, among others.

The St. Petersburg, Florida-based advanced manufacturing services company recently announced better-than-expected financial results for the second quarter. Jabil reported earnings of $151.7 million, or 99 cents per share for the three months ended February 28, as compared to a loss of $3.3 million, or 2 cents per share in the same period of 2020. Excluding items, its adjusted earnings of $1.27 per share easily surpassed the consensus forecast of 95 cents per share.

Revenue for the quarter rose 11.5 percent on a year-over-year basis to $6.83 billion, beating analysts’ average estimate of $6.57 billion. If we look at the performance of different segments, revenue from diversified manufacturing services jumped 26 percent, while revenue from electronic manufacturing services slipped 1 percent in the quarter.

CEO Mark Mondello expressed his happiness over the results and called the quarterly performance “outstanding.” Mondello added, “The combination of broad end-market strength, more favorable product mix, and excellent operational execution by the team allowed us to deliver $285 million in core operating income on revenue of $6.8 billion.”

Jabil also increased its financial outlook for the full year. It now expects to report an adjusted profit of around $5 per share on revenue of around $28.5 billion for 2021, up from its previous guidance of $4.60 per share and $27.5 billion, respectively.

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