Jabil Circuit stock triggered a MACDThe MACD indicator is essentially a momentum indicator that shows the relationship between two different moving averages of price. The MACD is the difference between the 12-period ... More buy signal on September 29, 2023, after the company raised EPS guidance.
Jabil reported Q4 core EPS of $2.45 versus the consensus estimate of $2.32. The company reported Q4 revenue of $8.46B versus the consensus estimate of $8.54B.
“The team delivered yet another solid year and I’m pleased with the progress we’ve made relative to our financial objectives,” said CEO Kenny Wilson. “As we move into the new fiscal year, I feel strongly that we have the right team, capabilities, and diversified portfolio to support good momentum into FY24 and beyond. And none of this would be possible, without our thriving and unified Jabil culture, which is as strong today as it’s ever been,” he added.
The reason the stock popped on September 29, 2023, is that investors are likely happy with its Q4 EPS surprise, particularly the Q1 EPS guidance that beat expectations despite macro headwinds. Despite the fact that the revenue guidance was below what was anticipated, the dynamic of rising EPS and falling revenue indicates that margins are stronger than anticipated. Jabil’s upcoming sale of its mobility division makes a lot of sense to shift away from the fiercely competitive consumer electronics market and concentrate on markets with faster growth.
Jabil price target raised at BofA
On September 29, 2023, BofA maintained a Buy rating on the shares of Jabil while increasing the price target from $130 to $145. The analyst informs investors that management’s emphasis on promoting margin expansion, free cash flowThe cash flow statement provides a detailed overview of the cash inflows and outflows of a company over a specified period of time. It includes cash received from operations, inves... More, and shareholder returns was highlighted during the company’s fiscal Q4 earnings call and analyst day. Although management’s guidance for the upcoming two fiscal years exceeded our expectations, the firm notes that it is still beatable by street estimates and that guidance has historically been conservative.
Jabil increases share repurchase program to $2.5B
The board of directors amended and expanded the existing share repurchase program, which had about $776 million remaining as of August 31, to permit the purchase of up to $2.5 billion in common stock. The shares will occasionally be bought back using a variety of strategies, including on the open market.
Jabil Inc is a global manufacturing solutions provider that offers comprehensive design, manufacturing, supply chain, and product management services to various industries. The company specializes in helping customers bring their products to market quickly and efficiently. Jabil provides services such as product design and development, prototyping, engineering, and testing. They also offer manufacturing capabilities including injection molding, assembly, packaging, and logistics support. Jabil’s supply chain management services involve procurement, inventory management, and global distribution. The company serves a wide range of industries, including automotive, healthcare, industrial, aerospace and defense, consumer products, and telecommunications. Jabil works with customers to provide flexible and customized solutions to meet their unique manufacturing needs.
Jabil Precision Automation Solutions
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