BYDDY - Jabil: EVs Are Turbo-Charging Growth

Summary

• Despite all the macro-headwinds, Jabil's Q4 and full-year 2022 results were outstanding: total revenue was up 14.3% and earnings were up 50.7%.
• FY22 segment results were led by a 41% increase in Auto & Transportation revenue. In my opinion, global governments' policy support makes that business relatively recession-proof.
• That growth is driven by EV-related orders within the company's relatively higher-margin Diversified Manufacturing Segment ("DMS").
• That, combined with the expected growth rate in global EV sales, means EVs are likely to continue powering JBL's growth for years to come.

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