Flextronics Should Be Bought At These Levels
Alpha Gen Capital • 12 Comments
Alpha Gen Capital • 12 Comments
Flextronics: Margin Expansion On Track, Capital Returns To Continue
Helix Investment Research
Helix Investment Research
Thu, Jul. 21, 4:10 PM
Wed, Jul. 20, 5:35 PM
Thu, Apr. 28, 5:14 PM
Wed, Apr. 27, 5:35 PM
- ABAX, ACHC, AEM, AIV, AJG, ALDR, ALGN, AMCC, AMGN, AMZN, ARII, ATEN, ATHN, ATR, ATRC, AZPN, BCOV, BGS, BIDU, BMRN, BOOM, BRKS, BVN, CATM, CENX, CHDN, CHE, CHMT, CLD, CLW, COHR, COLM, COWN, CPHD, CPT, CUBE, DDR, DGII, DLR, ECOL, EHTH, ELLI, EMN, EPAY, EPR, ESS, EXLS, EXPE, EYES, FET, FII, FLEX, FLS, FPO, GB, GILD, GIMO, GNW, GRPN, HELE, HIG, HT, HTH, HURN, HWAY, INVA, IPHI, ISBC, JNPR, KBR, KRG, LEG, LNKD, LOGM, LPLA, MATW, MMSI, MOBL, MOH, MSA, MSCC, N, NATI, NFG, NPTN, NR, NSIT, NSR, NUS, OFIX, OMCL, OUTR, P, PCCC, PDFS, PFG, PODD, PXLW, QLIK, RGA, RGC, ROVI, RRC, RSG, SCSS, SGEN, SHOR, SKYW, SMCI, SNMX, SPN, SPNC, SRCL, STRZA, SWKS, SYNA, TEP, TLGT, TMST, TNDM, TRMB, TXTR, VCRA, VDSI, VGR, VR, VRSN, WDC, YRCW
Fri, Jan. 29, 8:01 AM
- FLEX has risen to $10.46 premarket after delivering an FQ3 beat attributed to across-the-board top-line strength. On its earnings call (transcript), the contract manufacturer said each of its business groups saw Y/Y sales growth if one excludes Flex's largest customer. Lenovo, which is dealing with a weak PC market and slowing smartphone growth, has been Flex's biggest client in prior periods.
- FQ4 guidance is for revenue of $5.5B-$6.1B and EPS of $0.25-$0.31 vs. a consensus of $5.98B and $0.27. Flex says it expects growth from new program ramps to be "offset by macro pressures and seasonality."
- Business lines: Flex added its Consumer Technologies Group is benefiting from the company's efforts to "drive a deeper consumer engagement model, where we are providing more meaningful product design and innovations in a sketch-to-scale value proposition." Its Industrial & Emerging Technologies unit has seen margin growth thanks to operational improvements and the acquisition of solar tracker maker NEXTracker, and the High Reliability Solutions unit is said to be "managing numerous new programs and product ramps and the successful integration of our MCi acquisition earlier this fiscal year."
- Financials: Lifting EPS: Gross margin rose 40 bps Q/Q and 90 bps Y/Y to 6.7%, and $90M was spent to buyback over 8M shares (~2% of outstanding shares). Non-GAAP SG&A spend rose 7% Y/Y to $218.8M. Flex ended FQ3 with $1.6B in cash and $2.8B in debt.
- Flex's numbers come shortly after peer Sanmina issued strong calendar Q1 guidance to go with a Q4 sales miss.
- Flex's FQ3 results, earnings release
Thu, Jan. 28, 4:06 PM
- Flex (NASDAQ:FLEX): FQ3 EPS of $0.35 beats by $0.04.
- Revenue of $6.76B (-3.8% Y/Y) beats by $250M.
Wed, Jan. 27, 5:35 PM| Wed, Jan. 27, 5:35 PM | 9 Comments
Oct. 19, 2015, 5:31 PM
- Range-bound FLEX has rallied to $11.85 (a level last seen in June) after hours after beating FQ2 estimates and guiding for FQ3 revenue of $6.2B-$6.8B and EPS of $0.28-$0.34, in-line with a consensus of $6.61B and $0.29.
- The contract manufacturer saw its adjusted op. margin rise 30 bps Y/Y in FQ2 to 3.1%. Gross margin (non-GAAP) rose 20 bps to 6.3%, and SG&A spend 4% to $202.6M.
- $142M was spent to buy back nearly 13M shares (over 2% of outstanding shares). Flex ended FQ2 with nearly $1.7B in cash, and over $2.6B in debt.
- FQ2 results, PR
Oct. 19, 2015, 4:04 PM
- Flex (NASDAQ:FLEX): FQ2 EPS of $0.27 beats by $0.02.
- Revenue of $6.32B (-3.2% Y/Y) beats by $150M.
- Shares +4%.
Oct. 18, 2015, 5:35 PM
Jul. 24, 2015, 10:08 AM
- Flextronics (NASDAQ:FLEX) is higher after posting in-line FQ1 EPS to go with a revenue miss, and guiding for FQ2 revenue of $5.9B-$6.5B and EPS of $0.22-$0.28 (in-line with a consensus of $6.23B and $0.25).
- Boosting FQ1 EPS: Adjusted gross margin rose 60 bps Y/Y to 6.4%, and SG&A spend (non-GAAP) fell 2% to $195.3M. Also, $100M was spent to buy back 8M shares.
- Along with the numbers, Flextronics has announced it has officially changed its name to Flex. "We have progressed in our product and service offering over the years, adding many new solutions, and today we are much more than just an EMS, supply chain solutions or 'tronics' company," says marketing/PR chief Michael Mendenhall.
- FQ1 results, PR
Jul. 23, 2015, 4:03 PM
- Flextronics International (NASDAQ:FLEX): FQ1 EPS of $0.23 in-line.
- Revenue of $5.57B (-16.1% Y/Y) misses by $320M.
Jul. 22, 2015, 5:35 PM
- ABAX, ACTG, ALGN, ALTR, AMZN, ATHN, BCR, BJRI, BLDR, BYD, CA, CB, CBI, CHE, CLGX, CLS, COF, CPHD, CTCT, CYN, DGII, ETFC, FET, FII, FLEX, FSL, GHL, GIMO, HBHC, HWAY, IG, JNPR, LOGM, LSTR, MITK, MKTO, MSCC, MXIM, N, NANO, NTGR, P, PEB, PFG, PFPT, PMCS, QLIK, RGA, RHI, RSG, RT, SBUX, SIVB, SPNC, SRCL, STAG, SWKS, SYK, T, TRIP, TRN, UIS, V, VRSN, WIRE, WRE
Apr. 29, 2015, 6:41 PM
- In addition to missing FQ4 revenue estimates (while beating on EPS), Flextronics (NASDAQ:FLEX) is guiding for FQ1 revenue of $5.6B-$6.2B and EPS of $0.20-$0.26, almost entirely below a consensus of $6.5B and $0.26.
- No explanation is given for the outlook in the earnings release. A strong dollar is a likely headwind. Soft telecom equipment demand might be as well.
- Separately, Flextronics has announced it's buying Mirror Controls (MCi), a Dutch maker of glass and powerfold mirror actuators for the auto industry, for $494M in cash (presumably offshore). With MCi having trailing revenue of $216M, Flextronics is paying 2.3x sales.
- Flextronics notes MCi has "highly automated" manufacturing facilities in China, Mexico, and Ireland, and has "historically" seen 20% Y/Y sales growth. The deal is expected to close in calendar Q3 (FQ2), and be accretive to EPS/cash flow.
- Shares have fallen to $11.62 AH.
- FQ4 results, PR
Apr. 29, 2015, 4:03 PM
- Flextronics International (NASDAQ:FLEX): FQ4 EPS of $0.27 beats by $0.02.
- Revenue of $5.95B (-11.5% Y/Y) misses by $320M.
Flextronics International Ltd. operates as an investment holding company, which delivers, designs, engineers, manufactures and provides logistics services to a range of industries and end-markets, including data networking, telecom, enterprise computing and storage, industrial, capital... More
Industry: Printed Circuit Boards
Country: United States
Other News & PR