Jabil Earnings Are a Tell for Apple iPhone Demand

Jabil Inc. has been expanding its diversified manufacturing services into the healthcare, automotive, energy, industrial and semiconductor economic segments. However, there are competitive headwinds related to its biggest customer Apple Inc.

Jabil stock closed Wednesday at $28.20, up 7.4% year to date and up 19% since its Feb. 6 low of $23.70. Its 2018 high of $28.64 was set on Jan. 18. Apple shares closed Wednesday at $178.44, up 5.4% year to date and up 18.8% since its Feb. 9 low of $150.24. Apple set its all-time intraday high of $183.50 on March 13. These performances are similar but with different technical profiles. Apple stock has been above its 200-day simple moving average of $162.40 since Feb. 12 but experienced a daily “key reversal” on March 13. The “key reversal” occurred when Apple stock set its all-time high and then closed below the prior day’s low, which was a warning for Jabil.

Analysts expect Jabil to post earnings per share of 62 cents when the company reports results after the closing bell on Thursday, March 15. Investors should focus on guidance from its Apple relationship, as this represents about 25% of the Jabil’s revenue. Apple’s “key reversal” is a warning. (See also: Why Apple iPhone X Worries May Be Overblown.)

Jabil makes components for tech companies including Apple. The stock is not cheap, with a P/E ratio of 49.60 and a dividend yield of just 1.13%. …read more

Read more here: Jabil Earnings Are a Tell for Apple iPhone Demand

Category: JBL, AAPL

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