Electronics manufacturing and services company Jabil (JBL) is seeing its stock rally 9.88% higher on Wednesday alongside its Fiscal Q1 2025 earnings report. That’s due to the company’s earnings per share of $2 beating out Wall Street’s estimate of $1.88. However, EPS is down roughly 23% year-over-year compared to $2.60 per share.
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Another boon to JBL stock is the company’s revenue of $6.99 billion. That’s another beat compared to analysts’ revenue estimate of $6.61 billion for the quarter. This is despite it dropping 16.7% from the $8.39 billion reported in Fiscal Q1 2024.
Jabil’s EPS and revenue beats were powered by strong performance in three units. Company CEO Mike Dastoor points to “incremental strength in our Cloud, Data Center Infrastructure, and Digital Commerce end-markets,” as what caused it to surpass estimates this quarter. This increase may be attributable to the ongoing artificial intelligence (AI) boom, which is strongly tied to data centers and cloud computing.
Guidance Updates Push JBL Stock Higher
Jabil also provided new guidance alongside its Fiscal Q1 earnings beats. The company expects EPS of $1.60 to $2 alongside revenue of $6.1 billion to $6.7 billion in Fiscal Q2 2025. That would easily overcome Wall Street’s estimates of $1.80 per share and $6.28 billion for the quarter.
Adding to this is the company’s updated Fiscal 2025 outlook. This includes EPS of $8.75 with revenue expected at $27.3 billion. Yet again, this guidance is promising compared to analysts’ estimates of $8.69 per share and $27.04 billion.
Is JBL Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Jabil is Strong Buy based on five Buy and one Hold ratings over the last three months. With that comes an average price target of $145.67, a high of $157, and a low of $128. This represents a potential 1.39% downside for JBL shares. These ratings and price targets will likely change as analysts update their coverage following today’s earnings report.
