Flex (NASDAQ:FLEX) Announces Quarterly Earnings Results

Flex (NASDAQ:FLEX) issued its quarterly earnings results on Wednesday. The technology company reported $1.18 earnings per share for the quarter, topping the consensus estimate of $1.06 by $0.12, FiscalAI reports. The business had revenue of $8.49 billion for the quarter, compared to analysts’ expectations of $8.17 billion. During the same quarter in the prior year, the business earned $0.79 EPS. The company’s revenue was up 24.8% compared to the same quarter last year.

Here are the key takeaways from Flex’s conference call:

• Q2 results exceeded expectations, with revenue up 25% to $8.5 billion, adjusted EPS up 49% to a record $1.18, and operating margin expanding 110 basis points to 7.1%.
• Cloud and Power Infrastructure revenue surged 54%, with operating margin expanding 240 basis points to 10.7%; full-year CPI growth guidance was raised to 75%–85%, including the EPC Power acquisition.
• Flex raised fiscal 2027 revenue guidance to $34.9 billion–$35.9 billion and adjusted EPS guidance to $4.84–$5.16, while management expects the EPC acquisition to be accretive this fiscal year.
• The planned spin-off of Cloud and Power Infrastructure, now branded Axiom, is progressing toward an early-2027 separation, with a Form 10 filed and leadership teams announced; further strategic and financial details are expected at Innovation Day on November 10.
• Supply-chain constraints remain significant, inventory rose 39% year over year, and elevated interest expense from EPC-related debt will weigh on results until the planned $2 billion preferred-stock transaction reduces the debt burden; consumer-related weakness also persists in ITS.

Flex Trading Up 9.6%

Shares of FLEX traded up $7.98 during trading hours on Wednesday, hitting $91.33. 6,070,666 shares of the stock traded hands, compared to its average volume of 4,836,591. The business has a fifty day moving average of $107.12 and a 200-day moving average of $102.40. Flex has a 1-year low of $53.07 and a 1-year high of $166.86.

Insider Activity at Flex

In other Flex news, insider Michael P. Hartung sold 2,755 shares of the business’s stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $120.64, for a total value of $332,363.20. Following the completion of the transaction, the insider directly owned 243,175 shares of the company’s stock, valued at approximately $29,336,632. The trade was a 1.12% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 0.62% of the stock is currently owned by company insiders.

Analyst Upgrades and Downgrades

Several research firms have weighed in on FLEX. Bank of America dropped their target price on shares of Flex from $180.00 to $150.00 and set a “buy” rating on the stock in a research report on Tuesday. Weiss Ratings lowered Flex from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Thursday, September 17th. JPMorgan Chase & Co. lowered their price target on Flex from $175.00 to $160.00 and set an “overweight” rating for the company in a report on Thursday, July 30th. Robert W. Baird lowered their price target on Flex from $142.00 to $135.00 in a research report on Monday, October 19th. Finally, Zacks Research lowered shares of Flex from a “strong-buy” rating to a “hold” rating in a report on Tuesday, July 7th. One analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and three have given a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $128.70.

Flex Company Profile

Flex Ltd. (NASDAQ: FLEX) is a global manufacturing and supply chain solutions provider. The company helps original equipment manufacturers design, engineer, manufacture, distribute and service products across their lifecycles.

Flex serves customers in industries including automotive, communications, consumer electronics, health care, industrial, lifestyle and cloud infrastructure. Its capabilities include product design and engineering, printed circuit board assembly, systems integration, supply chain management, logistics, and aftermarket services.

The company was founded in 1969 as Flextronics and later adopted the name Flex.