Flextronics Should Be Bought At These Levels
Alpha Gen Capital • 12 Comments
Alpha Gen Capital • 12 Comments
Thu, Oct. 27, 4:47 PM
Wed, Oct. 26, 5:35 PM
- ACTG, AFL, AIV, AJG, ALDR, ALEX, ALJ, AMCC, AMGN, AMZN, ARAY, ARII, ASGN, ATEN, ATR, ATRC, AUY, AZPN, BGS, BIDU, BMRN, BOFI, BOOM, BSAC, BVN, CA, CATM, CBI, CBL, CEMP, CENX, CHDN, CLD, CLMS, CNMD, COLM, COWN, CPT, CRUS, CUBE, CXP, CY, DECK, DGII, DLR, ECOL, EGO, EHTH, ELLI, EMN, ESS, EXPE, FET, FII, FIX, FLEX, FLS, FORM, FPO, FR, FTNT, FTV, GIMO, GOOG, HBI, HIG, HLS, HTH, IART, IM, INT, INVA, IPHS, ISBC, ITGR, KAMN, KIM, KONA, KRG, LEG, LNKD, LOGM, MAA, MAC, MCK, MLNX, MOBL, MOH, MSA, MSTR, NANO, NATI, NGD, NR, NSIT, NSR, OFC, OII, OIS, OMCL, OSIS, PDFS, PEB, PFG, PKD, POWI, PSMT, PXLW, RGC, RSG, SGEN, SHOR, SIMO, SKYW, SMCI, SNMX, SPNC, SPSC, SRCL, SSD, SSNC, STRZA, SYK, SYNA, TDOC, TEAM, TFSL, TGB, TLGT, TMST, VCRA, VDSI, VR, VRSN, WRE, WRI, WSFS, YRCW
Wed, Oct. 5, 4:38 PM
- Buy rating, $16 price target (current price $14.04) restated.
- Analyst Mark Delaney: "We believe Flex can grow EPS at a double digit CAGR over the intermediate term driven by its entry into new markets, margin expansion, and a reduced share count due to repurchases. For example, we estimate that each $1 bn of additional revenue from new customers such as Nike where Flex has increased design creation content and in turn higher margins could add 10% or more to EPS."
- Models respective revenue and EPS estimates of $23.7B and $1.01 for the March-ended financial year (consensus – $23.9B, $1.19).
- Flex (NASDAQ:FLEX) shares closed the day higher by 3%.
Thu, Jul. 21, 5:34 PM
Thu, Jul. 21, 4:10 PM
Wed, Jul. 20, 5:35 PM
Wed, May 4, 12:32 PM
Thu, Apr. 28, 5:14 PM
- Flex (NASDAQ:FLEX): Q1 EPS of $0.29 beats by $0.01.
- Revenue of $5.77B (-3.0% Y/Y) misses by $30M.
- Shares -7.15% AH.
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, 9:15 AM
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
Dec. 11, 2015, 1:43 PM
- Liking the contract manufacturer's expansion into higher-margin businesses and believing buybacks limit downside risk, Citi's Jim Suva has upgraded Flex (FLEX +0.6%) to Buy, and hiked his target by a dollar to $14.
- Flex remains positive in spite of a 1.9% Nasdq drop. The company spent $142M on buybacks in calendar Q3. Two acquisitions of relatively high-margin businesses - solar tracker maker NEXTracker and automotive mirror actuator maker Mirror Control - have been announced this year.
Oct. 19, 2015, 5:39 PM
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