Market Overview

Jabil's Guidance Shows The Company Doesn't Believe Its Fate Is Tied To Apple

Jabil's Guidance Shows The Company Doesn't Believe Its Fate Is Tied To Apple

Jabil Inc (NYSE: JBL) surprised UBS’ Steven Milunovich with by raising EPS guidance for fiscal 2018 to $2.60, compared to a $2.52 consensus.

The analyst reiterated a Buy rating and raised the company’s price target from $30 to $35. The increase reflects a shift from calendar 2017 to fiscal 2018 non-GAAP EPS of $2.65, despite leaving estimates “largely unchanged.”

The company’s fiscal third-quarter beat consensus with revenue at $4.5 billion compared to $4.4 billion and non-GAAP EPS of $0.31 over $0.29.

While Q4 guidance was as expected, management’s bullish tone in announcing fiscal 2018 has Milunovich suspecting opportunities for Jabil beyond Apple Inc. (NASDAQ: AAPL), which accounts for 24 percent of Jabil’s revenue.


Jabil Beyond Apple

The guidance suggests that Jabil is confident Apple’s iPhone 8 will be a success, and may also gain from participating in other products such as the new HomePod.

That said, fiscal 2018 non-GAAP EPS and Q4 guidance for the company’s diversified manufacturing services, which rose about $100 million for 26-percent growth year-over-year “wouldn’t occur with a rebound in Apple business,” according to Milunovich.

Milunovich believes the company may seek opportunities in apparel, noting that it is likely in discussion with non-Nike Inc (NYSE: NKE) shoes companies.

Furthermore, “previously lowly contract manufacturers are benefitting” from greater roles in the good they produce and a shift towards more profitable industrial, healthcare, and packaging clients.

At time of publication, shares of Jabil were down 3.23 percent at $29.64.

Related Links:

5 Stocks To Watch For June 15, 2017

HP Inc to Expand 3D Printing Footprint across Asia Pacific
Image Credit: [Public domain], via Wikimedia Commons

Latest Ratings for JBL

Dec 2020Goldman SachsDowngradesBuyNeutral
Sep 2020RBC CapitalMaintainsSector Perform
Sep 2020CitigroupMaintainsBuy

View More Analyst Ratings for JBL
View the Latest Analyst Ratings


Related Articles (AAPL + JBL)

View Comments and Join the Discussion!

Posted-In: Analyst Color Earnings Long Ideas M&A News Guidance Rumors Price Target Best of Benzinga

Latest Ratings

MRTXHC Wainwright & Co.Maintains257.0
NVDATruist SecuritiesMaintains672.0
BLKBMO CapitalMaintains715.0
BLKDeutsche BankMaintains838.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at