Jabil at Record High: Growth Drivers and Optimized Outlook

Jabil's stock experienced a remarkable increase, reaching a record high, emerging as the leader in the S&P 500 on Tuesday morning. The reason for this is the better-than-expected third-quarter results and the company's raised annual forecast. The circuit board manufacturer's revenue rose by almost 16% year-over-year, reaching $7.83 billion, significantly surpassing the analyst consensus forecast of $7.04 billion created by Visible Alpha. Additionally, the adjusted earnings per share of $2.55 also exceeded expectations. CEO Mike Dastoor emphasized the role of the Intelligent Infrastructure division as a significant growth driver. Despite weaknesses in areas such as electric vehicles, renewable energy, and 5G, the diversified portfolio, combined with operational discipline, allows the company to aim for record earnings per share. The annual forecast was raised to $29 billion in revenue and $9.33 in core earnings per share, compared to previous expectations of $27.9 billion and $8.95. In the fourth quarter, Jabil expects revenues between $7.1 to $7.8 billion and core earnings of $2.64 to $3.04 per share, with the midpoints of both forecasts above Visible Alpha's consensus estimate. Among recent trading activities, Jabil's stock price rose by over 11% to $201.84 after previously reaching a new all-time high of $202.82.