Flex Q3 sales rise 8%, beat estimates

Overview

• Manufacturing partner's fiscal Q3 net sales rose 8%, beating analyst expectations

• Adjusted EPS for fiscal Q3 beat analyst expectations

• Company raised full-year guidance for net sales, adjusted operating margin, and adjusted EPS

Outlook

• Flex raises full-year net sales guidance to $27.2 bln - $27.5 bln

• Company expects Q4 adjusted EPS of $0.83 to $0.89

• Flex anticipates full-year adjusted EPS of $3.21 to $3.27

Result Drivers

• DIVERSIFIED MODEL - Flex attributed strong Q3 results to its diversified business model across industries, including Data Center

• RECORD MARGINS - Achieved record adjusted operating margin of 6.5%, marking fifth consecutive qtr above 6%

• GUIDANCE RAISED - Co raised full-year guidance for net sales, adjusted operating margin, and adjusted EPS

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", no "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 $75.00, about 13.7% above its February 3 closing price of $65.99

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 18 three months ago

Press Release: ID:nPnb0hfMca

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