Jabil Stock Jumps on Strong Earnings, Outlook

Jabil shares surged to join the S&P 500’s top-performing stocks Thursday after the circuit board maker reported better-than-expected earnings and issued an upbeat outlook.

The St. Petersburg, Fla.-based firm posted adjusted earnings per share (EPS) of $1.94 on revenue of $6.73 billion for the fiscal second quarter. Analysts polled by Visible Alpha expected $1.81 and $6.40 billion, respectively.

“In Q2, we exceeded our expectations due to continued strength in our capital equipment, cloud and data center infrastructure, and digital commerce end-markets,” CEO Mike Dastoor said.

Jabil’s Outlook Tops Projections as AI Demand Grows

For the current quarter, Jabil sees adjusted EPS between $2.08 and $2.48, and revenue of $6.7 billion to $7.3 billion, ahead of estimates. For the full year, it projects EPS of $8.95 on revenue of $27.9 billion, also topping projections amid expectations Jabil could continue to benefit from strong demand for AI.

“AI associate business is now expected to represent approximately $7.5 billion in revenue this fiscal year as demand for servers, racks, photonics, advanced networking, gear, storage and testing equipment all continue to climb higher,” Dastoor said during the earning call, according to a transcript provided by AlphaSense.

Jabil shares were up over 4% in Thursday afternoon trading and have gained about 12% over the past year.