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Jabil (NYSE:JBL) just lit up Wall Street, with shares soaring up to 10%, after smashing earnings expectations. The manufacturing powerhouse posted $2 in adjusted EPS for the quarter, beating the $1.88 forecast by a comfortable margin. Revenue? A cool $7 billion, leaving analysts' $6.6 billion consensus in the dust. CEO Mike Dastoor credits the wins to surging demand in cloud, data center infrastructure, and digital commercethree red-hot sectors where Jabil is doubling down. Oh, and FY25 EPS guidance is now pegged at $8.75, up from $8.65.
Here's where it gets juicy: Jabil isn't just coasting on a good quarterit's reshaping its future. The company's $2.2 billion exit from the mobility business is already paying dividends, freeing up resources for AI, healthcare, and warehouse automation investments. With a fresh $1 billion share buyback plan and projected FY25 free cash flow of $1.2 billion, Jabil is making all the right moves to keep shareholders smiling. Analysts? They're bumping price targets north of $150, calling Jabil a strong bet for long-term value.
Sure, headwinds in the automotive and renewable energy markets could rattle less-diversified players, but not Jabil. It's powering ahead with advanced tech like liquid cooling systems and photonic interconnectsessential for the AI revolution. The message is clear: Jabil is positioned to dominate the next wave of innovation, and investors who don't pay attention now might regret it later.
This article first appeared on GuruFocus.