Flex Q2 sales beat on acquisition boost
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
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(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.)