Free Research Report as Flex’s Revenue Grew 4%; Reported GAAP Earnings

Stock Monitor: Kimball Post Earnings Reporting

LONDON, UK / ACCESSWIRE / November 30, 2017 / Active-Investors free earnings report on Flex Ltd (NASDAQ: FLEX) has freshly been issued to its members, and you can also sign up to view this report at www.active-investors.com/registration-sg/?symbol=FLEX. Flex reported its second quarter fiscal 2018 operating results on October 26, 2017. The electronics designer and manufacturer outperformed top- and bottom-line expectations and also provided guidance for the upcoming quarter. Register today and get free access to our complimentary member’s area where many more reports are available:

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Active-Investors.comis currently working on the research report for Kimball International, Inc. (NASDAQ: KBAL), which also belongs to the Technology sector as the Company Flex. Do not miss out and become a member today for free to access this upcoming report at:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Flex most recent news is on our radar and we have decided to include it on our blog post. Today’s free coverage is available at:

www.active-investors.com/registration-sg/?symbol=FLEX

Earnings Highlights and Summary

Flex’s net sales for the second quarter ended September 29, 2017, were $6.3 billion, growing 4% compared to net sales of $6.01 billion in Q2 FY17 and at the high-end of the Company’s guidance range of $5.9 billion to $6.3 billion. Flex’s revenue topped analysts’ expectations of $6.1 billion.

During Q2 FY18, Flex’s GAAP income before income taxes was $218 million versus $15 million in Q2 FY17. The Company’s adjusted operating income for the reported quarter was $188 million compared to $197 million in the prior year’s corresponding quarter and came in above the mid-point of the guidance range of $170 million to $200 million.

Flex posted GAAP net income of $205 million, or $0.38 per share, compared to GAAP net loss of $3 million, or $0.00 per share, for Q2 FY17. The Company’s adjusted net income for the reported quarter was $142 million, or $0.27 per share, compared to adjusted net income of $152 million, or $0.28 per share, for the year ago corresponding period. Flex’s earnings topped Wall Street’s expectations of $0.25 per share.

Flex’s Segment Results

During Q2 FY18, the Communications & Enterprise Compute (CEC) business generated sales of $1.90 billion compared to $2.10 billion in Q2 FY17. The segment posted $43 million in adjusted operating profit, which equated to a 2.2% adjusted operating margin, and declined by $9 million from the prior year’s same period. The decline in profitability was driven by the lower overhead absorption due to lower revenue levels, combined with modestly-elevated costs associated with the expansion of Flex’s cloud data center capabilities.

For Q2 FY18, the Consumer Technologies Group (CTG) recorded net sales of $1.76 billion versus $1.66 billion in Q2 FY17. The segment reported $31 million in adjusted operating profit resulting in an adjusted operating margin of 1.8%. Flex’s High-Reliability Solutions (HRS) business delivered sales of $1.16 billion in the reported quarter compared to sales of $999.15 million in the year earlier same quarter. The segment posted $92 million in adjusted operating profit, a stable 8% adjusted operating margin, and recorded a record quarterly profit level.

The Industrial and Emerging Industries (IEI) business generated sales of $1.45 billion versus $1.24 billion in Q2 FY17 and $51 million in adjusted operating profit, achieving a 3.5% adjusted operating margin. This business saw strong demand and achieved record quarterly revenue, driven by ramping several new customer programs, which pressured margins due to short-term startup costs.

Cash Flow and Balance Sheet

For the three-month period ended September 29, 2017, Flex generated cash from operations of approximately $142 million and free cash flow of $34 million. For the six-month period ended September 29, 2017, the Company generated cash from operations of $281 million and free cash flow of $53 million.

Flex repurchased ordinary shares for approximately $71 million and $145 million during the three and six-month periods ended September 29, 2017, respectively. The Company ended Q2 FY18 with over $1.3 billion of cash on hand and total debt of $3.0 billion.

Outlook

For the third quarter ending December 31, 2017, Flex is forecasting revenue in the range of $6.3 billion to $6.7 billion. The Company is expecting GAAP EPS to be in the band of $0.20 to $0.24, including stock-based compensation expense and intangible amortization. Flex’s adjusted EPS is expected to be in the range of $0.28 to $0.32 per diluted share.

Stock Performance Snapshot

November 29, 2017 – At Wednesday’s closing bell, Flex’s stock dropped 2.90%, ending the trading session at $18.11.

Volume traded for the day: 3.23 million shares, which was above the 3-month average volume of 3.22 million shares.

Stock performance in the last month – up 1.34%; previous three-month period – up 11.45%; past twelve-month period – up 24.55%; and year-to-date – up 26.03%

After yesterday’s close, Flex’s market cap was at $9.62 billion.

Price to Earnings (P/E) ratio was at 17.88.

The stock is part of the Technology sector, categorized under the Printed Circuit Boards industry.

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