Jabil Circuit (NYSE: JBL), an electronics manufacturing services and solutions provider, reached pandemic levels in March 2020.
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May 4, 2021
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This story first appeared on MarketBeat.
Electronics manufacturing services and solutions provider Jabil Circuit (NYSE: JBL) has hit a one-year depletion rate since a pandemic bottom hit in March 2020. The explosion in consumer electronics and device use has been a key driver of growth, especially as consumers are moving to the workplace-tackle home trends. The electronic circuit board maker is a key component supplier and supplier to major brands including Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), Hewlett Packard (NYSE: HP), Johnson & Johnson (NYSE: JNJ), and Tesla. (NASDAQ: TSLA). The company intends to capitalize on the growth in electronics manufacturing through digital transformation and 5G adoption, which will be hampered by a global chip shortage in 2021. Re-discoveries are accelerating thanks to COVID vaccinations. Discreet investors looking to capitalize on the continuing growth trends in healthcare, automotive and 5G adoption can monitor Jabil Circuit stock for random pullbacks.
Profit and loss statement for the 2nd quarter of 2021
On March 16, 2021, Jabil reported financial results for the second quarter of 2021 for the quarter ended in February 2021. The company reported earnings per share of $ 1.27, compared with the analyst consensus estimate of $ 0.82, up $ 0.45. Revenue rose 11.5% year-over-year to $ 6.83 billion, beating analyst estimates of $ 6.39 billion. Diversification Manufacturing Services (DMS) revenue grew 26%, while Electronics Manufacturing Services (EMS) revenue fell (-1%) YoY The company generated $ 20 million in the second quarter, and CAPEX net of customer co-investment amounted to $ 152 million. Global credit lines totaled $ 3.8 billion with total available liquidity of $ 4.6 billion. The company has repurchased 1.9 million shares at a price of $ 82 million, with an additional $ 254 million remaining under the buyback authorization, which is expected to be completed by 2H2021.
Jabil raises forecasts
The company raised its 3Q earnings per share forecast to a range of $ 0.90 to $ 1 from an analyst estimate of $ 0.87. Revenue is expected to be between $ 6.6 billion and $ 7.2 billion, up from the analyst consensus estimate of $ 6.33 billion. Jabil raised its fiscal 2021 earnings per share forecast to $ 5.00 from analyst estimates of $ 3.94 and revenue forecast to $ 28.5 billion from analyst estimates of $ 26.98 billion …
Conclusions on conference calls
Jabil CEO Marc Mondello set the tone: “Today our business is versatile and sustainable; this is especially true when a particular product or family of products is faced with a macroeconomic disruption in cyclical demand. In addition, our current business structure provides a unique set of capabilities, innovative capabilities open to share across the entire enterprise, quickly and accurately as we simplify the complex for our customers. It is a proven formula trusted by many of the world’s most distinguished companies. ” CEO Mondello noted that the efforts of the past few years have allowed the Company to expand its industry segment base and meet global trends, including 5G, personalized healthcare, digital learning, electric vehicles, cloud computing, clean energy and the environment. friendly packaging.
Secular trends that drive growth
Jabil’s CFO Mike Dastour summarized the long-term secular trends that will drive growth for years to come. In healthcare, companies are moving from manufacturing to connected product solutions. In the automotive industry, electric vehicles are the main driving force, currently accounting for only 2% of the total number of vehicles. “Climate change, fuel efficiency and emissions are constant challenges and regulatory policies around the world are starting to demand greener technologies.” 5G adoption is accelerating: “5G will change the way we live, work, play and educate. As the underlying infrastructure continues to unfold. ” It also facilitates further cloud migration and expansion: “This, combined with the value proposition that Jabil is offering to cloud hyperscale companies, is helping to increase market share in an expanding market, as evidenced by significant growth over the past three years.”
JBL opportunistic retracement levels
Using rifle charts on the weekly and daily timeframes gives an accurate picture of the JBL stock situation. The uptrend of the weekly rifles chart peaked below $ 56.05. Fibonacci level (Fibonacci)… The stock fell to support the 5-period moving average (MA) at $ 53.50 as the weekly stochastic peaked near the 100-band band and crossed below. The weekly 15-period moving average is near the $ 48.73 fiber. The Daily Stochastic formed a Stochastic Mini Reverse Pup on the break of the Market Structure High (MSH) trigger below $ 53.23. Daily low market structure (MSL) The purchase was initiated by a $ 44.18 breakout in March 2021. The daily Bollinger Bands (BB) are narrowing but are now starting to widen, signaling a broader price range formation, likely on a downturn. This can provide Opportunistic retracement levels at $ 48.78, $ 46.18, $ 44.29, $ 42.76, $ 40.08, and $ 38.20. Growth trajectories range from the $ 58.90 Fibonacci level to the $ 66.46 Fibonacci level. Watch out for similar shares of SANM and CLS as they tend to move together as a group.
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