Jabil is Urgently Hiring Ahead of Earnings Announcement

JBL will release its fiscal second-quarter earnings before the open tomorrow

Mar 15, 2022 at 10:28 AM
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Yesterday, Jabil Inc. (NYSE:JBL) issued a call to fill 60 positions in 60 days in its Albuquerque, New Mexico healthcare manufacturing facility. The Albuquerque facility is part of the Healthcare division of Jabil that produces medical devices using traditional and cutting-edge manufacturing techniques.

On top of that urgent need to staff its workforce, Jabil is scheduled to release its fiscal second-quarter earnings report before the open tomorrow, March 16. Last quarter, JBL reported earnings of $1.92 per share. Wall Street analysts now anticipate a decreased EPS (earnings per share) of $1.48 to be filed in Jabil's upcoming earnings report.

The stock does have a promising post-earnings history, with just one of its past eight reports resulting in a negative one-day return. During this time period, JBL averaged a next-day move of 4.3%, regardless of direction, which is much smaller than the 9.8% move options traders are pricing in this time around. 

Citigroup chimed in ahead of the event, adding the stock to its "U.S. Focus List." Analyst sentiment surrounding JBL was already overwhelmingly bullish. All four analysts in coverage call the stock a "strong buy," while the 12-month consensus price target of $78.25 is a 41.5% premium to current levels. 

The stock is up 2.1% at $55.33 today, with a 13.2% year-over-year lead. However, JBL has shed 21% in 2022, with stiff pressure from the 20-day moving average keeping a lid on shares since mid-January. 

jbl chart march 15

Still, the manufacturing stock offers relatively secure and consistent fundamentals. To begin with, Jabil stock has a very attractive valuation, trading at a forward price-earnings ratio of 8.54 and a price-sales ratio of 0.30. Moreover, Jabil provides a dividend yield of 0.58% with a forward dividend of $0.32.

JBL has also managed to maintain constant top- and bottom-line growth over the past few years, with fiscal 2020 being the only year in recent time where the manufacturing name saw a decline in net income. Jabil has grown its trailing 12-month revenues and net income 36% and 753%, respectively, since fiscal 2018. JBL's trailing 12-month revenues and net income are also up 2.5% and 6%, respectively, since reporting its fiscal 2021 financial results. In addition, JBL is estimated to see an 8% increase in earnings and a 4.5% increase in revenues next year, making the stock a safe option for value investors.

 

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