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Flex Q2 sales beat on acquisition boost

By Reuters News


Overview

  • Manufacturing solutions provider's fiscal Q2 sales rose 25% yr/yr, beating analyst expectations

  • Adjusted EPS for fiscal Q2 reached $1.18, beating analyst expectations

  • Company advancing Cloud and Power Infrastructure spin-off and completed EPC Power acquisition


Outlook

  • Flex raises full-year net sales guidance to $34.9 bln-$35.9 bln from $33.7 bln-$35.2 bln

  • Company now expects full-year adjusted EPS of $4.84-$5.16, up from $4.42-$4.74

  • Flex forecasts Q3 net sales of $8.87 bln-$9.17 bln and adjusted EPS of $1.19-$1.25


Result Drivers

  • ACQUISITION IMPACT - Co said EPC Power acquisition completes its end-to-end Power portfolio and will be immediately accretive in fiscal 2027

  • SEGMENT SPIN-OFF COSTS - Co incurred separation costs related to planned Cloud and Power Infrastructure segment spin-off, impacting free cash flow


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Sales

Beat

$8.49 bln

$8.14 bln (9 Analysts)

Q2 Adjusted EPS

Beat

$1.18

$1.05 (10 Analysts)

Q2 EPS

$0.70

Q2 Net Income

$263 mln

Q2 Gross Profit

$812 mln

Q2 Operating Income

$414 mln

Q2 Pretax Profit

$370 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the electronic equipment & parts peer group is "buy"

  • Wall Street's median 12-month price target for Flex Ltd is $150.00, about 80% above its October 27 closing price of $83.35

  • The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 32 three months ago


Reuters Recommended Reads

  • Oct 26 - Canada's Celestica Q3 revenue jumps 83% on higher customer demand, operating leverage; raises 2026 outlook

  • Oct 27 - Illinois Tool Works Inc beats Q3 EPS estimates, raises 2026 outlook

  • Oct 28 - TE Connectivity Q4 sales beats on industrial, transportation segments growth


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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