Flex Beats Q3 Earnings On Strong Sales, Margins; Stock Gains

Flex Ltd. FLEX reported third-quarter adjusted earnings per share of 77 cents, beating the street view of 64 cents.

Quarterly sales of $6.556 billion (+2.1%) outpaced the analyst consensus estimate of $6.203 billion.

The company’s gross profit in the quarter under review totaled $594 million, higher than $433 million in the year-ago period.

“We achieved a very strong Q3, delivering another quarter of record adjusted operating margin and EPS,” said Revathi Advaithi, CEO of Flex.

The company’s adjusted operating income in the quarter under review totaled $399 million, higher than $314 million in the year-ago period.

“Our consistent margin expansion is coming from improving mix and efficiency in every business unit across Flex,” the CEO added.

Flex exited the quarter with cash and equivalents worth $2.313 billion and inventories worth $5.270 billion.

Flex’s long-term debt, net of current portion, at the quarter end was $3.147 billion, down slightly from $3.261 billion at the end of March 2024.

Outlook: Flex has updated its FY25 revenue outlook to a range of $25.4 billion to $25.8 billion, compared to the previous range of $24.9 billion to $25.5 billion. This new outlook exceeds the analyst estimate of $25.24 billion.

For FY25 adjusted EPS, Flex expects a range of $2.57 to $2.65, up from the prior forecast of $2.39 to $2.51. The updated adjusted EPS range is also above the analyst estimate of $2.47.

Flex expects fourth-quarter revenue to be between $6.0 billion and $6.4 billion, compared to the analyst estimate of $6.16 billion.

The company anticipates fourth-quarter adjusted EPS ranging from 65 cents to 73 cents, compared to the 67 cents estimate.

Price Action: FLEX shares are trading higher by 0.32% to $40.72 at last check Wednesday.

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