Sign In  |  Register  |  About Daly City  |  Contact Us

Daly City, CA
September 01, 2020 1:20pm
7-Day Forecast | Traffic
  • Search Hotels in Daly City

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

Which Two Bluechip Tech Companies Have Raised Their Guidance?

Which Two Bluechip Tech Companies Have Raised Their Guidance?

The outlook for next year is cloudy. Tech may be one of the more unlucky sectors but it depends on which tech you discuss. Startup quality early-phase growth tech and bluechip quality dividend-paying tech are not the same investment, regardless of the subindustry. Bluechip tech like Jabil Inc. (NASDAQ: JBL) and Adobe Inc. (NASDAQ: ADBE) should not only outperform expectations for the future, but the numbers show upside risk as well. 

Jabil Falls on Strong Quarter, Improved Guidance 

Jabil is fundamental to the manufacturing supply chain in more ways than one. It develops processes and components for finished products and for the devices and machinery that makes those products. That’s why the company still delivers double-digit revenue growth and the outlook for next year is favorable. The company reported $9.63 billion in FQ1, calendar Q4, which is good for a gain of 12.5% over last year. It beat the consensus by over 300 basis points as well. The strength also carried through to the bottom line and resulted in 28% earnings growth, particularly in both the diversified and electronics manufacturing segments. It should carry into next year. 

“I remain confident in our plan moving forward, which is supported by both strong secular tailwinds and continued refinement of our more traditional businesses,” said CEO Mark Mondello.

Share prices are down on the news but the guidance should help support the action over the long term. The company issued Q2 guidance that came in a wide range but left ample room for outperformance relative to the MarketBeat consensus estimate.

Looking at the chart, investors have an opportunity as it brings this strong trend back to the 30-day moving average and into a technical buy zone that may produce a solid signal. The company doesn’t pay a high-yielding dividend but it pays a safe dividend and repurchases shares as well. 

Two Bluechip Tech Companies That Are Raising Their Guidance 

Adobe Continues to Build a Stronger Company 

Shares of Adobe are down since the Q3 earnings report, partially due to the revelation the company would purchase Figma. The deal came as a shock but has opened up a significant window of opportunity for investors. The stock trades at long-term lows, outperforms expectations and provides favorable guidance. The Figma deal has gained traction among investors and Adobe customers. 

"We've had a lot of conversations and people are starting to see how this deal strengthens us and how we are complementary to each other," said Jonathan Vaas, vice president of investor relations at Adobe. "Many of our customers are big supporters of us bringing Figma to Adobe."

In Q4 results and outlook, the company reported mixed FQ4 results. It's mixed in the sense that revenue was as expected and earnings were better. The guidance and the outlook for 2023 is the same with a chance of outperformance as well. The Q1 guidance came in well above consensus and should set the company up for a strong year. Two Bluechip Tech Companies That Are Raising Their Guidance 

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Copyright © 2010-2020 DalyCity.com & California Media Partners, LLC. All rights reserved.