Flex Jumps 5% In Extended Trading On Earnings Beat, Upbeat Guidance
Shares of Flex (FLEX) rose 4.9% in extended trading on Thursday, thanks to its better-than-expected 1Q earnings and upbeat guidance. Adjusted earnings of $0.23 per share beat analysts’ estimates of $0.17. The electronics contract manufacturer posted revenues of $5.15 billion that also surpassed Street estimates of $4.94 billion.
The company’s CEO, Revathi Advaithi said, “The Flex team delivered strong results in Q1, overcoming the challenges presented by the COVID-19 pandemic.” Flex’s CFO Chris Collier added that “We made solid progress on driving efficiencies and reducing costs during the quarter which better positions the company to effectively manage through this environment.”
Collier anticipates sequential recovery across all of its end markets in 2Q. He stated that though overall revenues remain under pressure due to the COVID-19 pandemic, the company will “make sequential improvement in profitability and adjusted earnings per share.
The company’s 2Q outlook also exceeded analysts’ expectations. The company anticipates revenues between $5.4 billion and $5.7 billion, which is higher than Street estimates of $5.38 billion. Following 2Q earnings and upbeat guidance, Citigroup analyst Jim Suva raised the price target to $15 (29% upside potential) from $13 and reiterated a Buy.
Overall, FLEX has a Moderate Buy analyst consensus. The average price target of $11.33 implies a 2.8% downside potential in the coming 12 months.(See FLEX stock analysis on TipRanks).
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