JBL
#Good observation.
I don't think it's any of that.
I don't have a good explanation for you other than to think about 2Q to 3Q revenue is up, whatever it is, $150 million or whatever.
That business is in very, very good shape.
Could there be some circumstances where the reason margins are going up is because maybe for some small accounts or whatnot, if we weren't able to get some decent ROIC or whatnot, we walked away.
There might be some of that, but overall, <UNK>, that business is in very good shape at the moment.
So to date, we've returned about, what, $300 million, something of that nature.
So we're about a third of the way through, so pretty much on track.
Remembering that does include dividends as well as the stock repurchasing.
Hey, <UNK>, it's <UNK>.
So since mid-January, <UNK>, myself and other Management have probably been on about 60 to 80 calls from customers asking, hey, could we run some simulations, can we run some models, what if, what if, what if.
One of the things that we're not doing is is we're not offering the customers positions or thoughts about what may or may not happen in terms of tariff, tax, et cetera.
But I think we're in a great position to run a bunch of different what if scenarios.
One of the things we've encouraged our customers to do is run three, four, five scenarios so they get it into muscle memory.
And therefore, depending on whatever happens in terms of DC and the US government, we're ready to act swiftly.
I think we're very well positioned on an absolute basis and a relative basis.
If you think about business coming back into the US, Jabil has a significant amount of capacity in the US and resource and headcount.
We've also been building product in the US forever.
If you think about Jabil from a political standpoint, we're in NYSE, US domiciled Company.
So I think both practically and politically, we're in a very, very good position to help.
Then I would supplement that by saying our digital cloud-based analytic tools in terms of supply chain analytics are being exercised quite heavily at the moment, running a bunch of these different scenarios.
So for us, it's being well prepared, helping our customers be well prepared and we'll see what happens in the coming months out of Washington.
So, hello, this is <UNK>.
In terms of the upside this particular quarter, it was relatively broad-based.
I think it was only, what, $25 million, $30 million to our expectations.
So pretty broad-based, certainly given the number of customers in that EMS segment that <UNK> discussed earlier.
As we move forward into Q3, we're down 1% on a year-over-year basis, sequentially up 5%.
So it's in really good shape.
Again, we talk in percentage terms but it's a little bit of rounding in the revenue on a year-over-year basis than what $30 million or something of that nature.
So that business is performing well, really across all the business sectors, if you will, and with that very nice sustainable margin profile.
Can't talk about any new customers.
I think I would characterize both in the digital world as well as 3D print as well as new markets, I would characterize it as in all cases we're either at or ahead of plan.
So we feel pretty bullish about all those areas.
And again, none of those will have an impact in the back half of 2017 and they probably won't have much of an impact in early 2018.
I would guess that those type of businesses will start to be impactful the back half of 2018 and moving into FY19.
What gives me confidence is we've been ---+ we've had our pick and our shovel hand in hand grinding in the healthcare and packaging business for the last two and-a-half, three years.
The team is awesome.
Our value proposition has finally framed out to where it's being really well received in both markets, and the last couple years have been to me more of an investment phase.
So we've added resource, we've taken away from some of the income through increasing OpEx.
And Steve Borges and his group and Eric Hoch in our packaging group, they've put together what I'd characterize as pretty amazing teams and our value prop in both of those areas is taking hold.
So my confidence as I sit here today on the 20% CAGR from 2016 to 2019 is very high.
Thanks, Steve.
Well your observation is correct.
Again, <UNK>, you know this business as good as anybody on the call.
And you know the variables, you know the catalysts, you know the puts and the takes.
It's a high bet business, and I'll just say that, again, I think our team does an amazing job.
I think we're reasonably well positioned, and we'll see how it plays out.
But I feel pretty good about what we said in prepared remarks and, again, we'll know better after we get through the fourth quarter.
But as we sit today, things look pretty good.
No, not at all.
I think our DMS margins are exactly where we thought they'd be for the balance of this year.
I think that there was a question earlier that was around this topic, and I think we have a good opportunity to get DMS margins back in the 5% to 7% range as we move into Fy18.
You combine that with the EMS margins and things could look pretty good.
Thanks, <UNK>.
I don't think the uptick in the mobility space is tied at all to the CapEx number.
So the CapEx number, as we play out the rest of the year with money that we haven't spent yet, I think CapEx so far first half of the year is around $300 million.
Very little of any CapEx for the rest of the year is going into mobility.
Our assets are largely in place, and I would suggest that against everything you've heard today we could take a bit of an upside on the installed asset base that we already have in place.
They held their own.
That's a bit of a broad-based question because storage today is legacy storage and also cloud-based storage.
I'd say the cloud-based storage, the hyper data, is performing better than some of the legacy storage.
But overall, I'd say it's holding its own.
You're welcome.
Well, we haven't provided any outlook for FY18 yet.
So everything you're looking at is truncated at the end of 4Q, so it's hard to extrapolate that out.
I think we'll see.
I think we'll talk more about that in the June call, <UNK>.
But again, do I think the 5% to 7% range for DMS is achievable in 2018, I do.
And again, I've been very bullish on commentary around packaging and healthcare.
There's also a significant amount of business in our overall DMS segment that is unrelated to handsets, and you guys can make the judgment on how you feel about the overall handset market.
But we've made some commentary around the fact that we've got a substantial amount of fixed assets in place, and we feel like we'll get some decent leverage on those assets in the first part of 2018.
We'll talk more about that in the June call most likely.
Thanks, <UNK>.
Yes, I think that if I remember right in 4Q of 2016, EMS was around $4.4 billion.
I think next quarter, so 3Q of 2017, EMS will be about $4.4 billion.
And I think that as we move into the fourth quarter of 2017 for us to deliver a decent year relative to consensus, EMS revenues have to be up a decent amount.
So I think a good estimate there might be for 4Q in the $4.8 billion, $4.9 billion ---+ excuse me, for EMS, $2.9 billion range.
So Q4 EMS $2.8 billion, Q4 2017, $2.9 billion, somewhere in that range.
I think ---+ how would I want to answer that.
I think we're efforting ---+ our whole strategy around EMS is to grow cash flows and do it on a more predictable consistent basis.
I think we'll see if we accomplish that, I don't know that we're there yet.
But I think one good proxy would be the last five or six earnings calls around EMS and our commentary around EMS forward-looking, we've delivered to that.
So I think that's a pretty decent proxy.
I think as we get into the June call and the September calls, we'll give you better call an annual basis of where we think EMS will be.
Thanks, <UNK>.
Thank you, everyone, for joining us today on our earnings call, and we certainly will be here the rest of the evening and week for any follow-up calls with investors, analysts and the investment community.
So thank you again for your interest and participation.
