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Building Confidence Through Non-Traditional Investments

On June 18, 2014, Jabil held it’s third quarter fiscal year 2014 earning announcement call. In spite of market headwinds, Jabil’s investment in non-traditional EMS markets is starting to build steam.

Jabil’s CEO, Mark Mondello, credited several new projects as examples of the different types of business that present a glimpse into the future of Jabil’s business.

For example, Mark highlighted big-data driven advanced planning and supply chain tools, automation investments and the expansion of advanced design services as ways Jabil is building smarter.

Additionally, investments within the energy, aging population, environmental regulations and sensors markets enable Jabil to further diversify its earnings and provide strong operational cash flows over the long term.

Several research analysts seem pleased with this strategy. For instance, Bank of America reiterated a Buy based on growing confidence in Jabil’s Diversified Manufacturing business.

“Jabil reported F3Q revenue above our estimate on higher revenues in Diversified Manufacturing Services (DMS) and High Velocity Systems (HVS). In our opinion the Street is underestimating the step function profitability improvement in the Nov quarter, which we believe provides a particularly attractive opportunity …”

RBC Capital, too, see’s upsides in Jabil’s DMS business.

“We believe Jabil is well positioned to benefit from a higher mix and margin profile in the DMS segment, which could accelerate in a growing macroeconomic environment.”

As Jabil continues to invest in new markets, it builds for the long-term, envisioning what acquisitions like Nypro might look like in the years to come.

“Scale, innovative capabilities and experienced leadership affords a credible path to various end markets in the months ahead.”

-Mark Mondello, CEO

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1 Comments

Bill Massey - bmasseycwk@gmail.com | 21 April 2016 at 9:16a

I'm looking forward to learning more about Jabil's investments in "energy".