Flex (NASDAQ:FLEX) Announces Earnings Results, Beats Estimates By $0.12 EPS

Flex (NASDAQ:FLEX) released its quarterly earnings results on Wednesday. The technology company reported $1.18 EPS for the quarter, topping analysts’ consensus estimates of $1.06 by $0.12, FiscalAI reports. The business had revenue of $8.49 billion for the quarter, compared to analyst estimates of $8.17 billion. Flex had a net margin of 3.35% and a return on equity of 24.93%. Flex’s revenue for the quarter was up 24.8% compared to the same quarter last year. During the same period last year, the firm earned $0.79 earnings per share.

Here are the key takeaways from Flex’s conference call:

• Q2 results exceeded expectations, with revenue up 25% to $8.5 billion, adjusted EPS up 49% to a record $1.18, and operating margin expanding 110 basis points to 7.1%.
• Cloud and Power Infrastructure revenue surged 54%, with operating margin expanding 240 basis points to 10.7%; full-year CPI growth guidance was raised to 75%–85%, including the EPC Power acquisition.
• Flex raised fiscal 2027 revenue guidance to $34.9 billion–$35.9 billion and adjusted EPS guidance to $4.84–$5.16, while management expects the EPC acquisition to be accretive this fiscal year.
• The planned spin-off of Cloud and Power Infrastructure, now branded Axiom, is progressing toward an early-2027 separation, with a Form 10 filed and leadership teams announced; further strategic and financial details are expected at Innovation Day on November 10.
• Supply-chain constraints remain significant, inventory rose 39% year over year, and elevated interest expense from EPC-related debt will weigh on results until the planned $2 billion preferred-stock transaction reduces the debt burden; consumer-related weakness also persists in ITS.

Flex Stock Up 0.0%

Shares of NASDAQ:FLEX opened at $93.07 on Friday. Flex has a 52-week low of $53.07 and a 52-week high of $166.86. The company has a market capitalization of $34.38 billion, a PE ratio of 25.91, a price-to-earnings-growth ratio of 0.47 and a beta of 1.67. The company has a debt-to-equity ratio of 0.90, a quick ratio of 0.89 and a current ratio of 1.34. The company has a fifty day moving average of $106.17 and a 200-day moving average of $102.72.

Insider Activity at Flex

In other Flex news, insider Michael P. Hartung sold 2,755 shares of the business’s stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $120.64, for a total transaction of $332,363.20. Following the sale, the insider directly owned 243,175 shares of the company’s stock, valued at $29,336,632. The trade was a 1.12% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders own 0.62% of the company’s stock.

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on FLEX shares. Wall Street Zen upgraded Flex from a “hold” rating to a “buy” rating in a research report on Saturday, September 26th. Freedom Capital raised Flex from a “hold” rating to a “strong-buy” rating in a research note on Thursday, July 16th. Robert W. Baird cut their price objective on shares of Flex from $142.00 to $135.00 in a research report on Monday, October 19th. Bank of America reduced their price objective on shares of Flex from $180.00 to $150.00 and set a “buy” rating on the stock in a research note on Tuesday. Finally, Raymond James Financial set a $170.00 target price on shares of Flex and gave the company an “outperform” rating in a report on Wednesday, July 29th. One equities research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $127.10.

About Flex

Flex Ltd. (NASDAQ: FLEX) is a global manufacturing and supply chain solutions provider. The company helps original equipment manufacturers design, engineer, manufacture, distribute and service products across their lifecycles.

Flex serves customers in industries including automotive, communications, consumer electronics, health care, industrial, lifestyle and cloud infrastructure. Its capabilities include product design and engineering, printed circuit board assembly, systems integration, supply chain management, logistics, and aftermarket services.

The company was founded in 1969 as Flextronics and later adopted the name Flex.