Flex (NASDAQ:FLEX) Releases Quarterly Earnings Results, Beats Estimates By $0.12 EPS

Flex (NASDAQ:FLEX) posted its quarterly earnings results on Wednesday. The technology company reported $1.18 EPS for the quarter, topping the consensus estimate of $1.06 by $0.12, FiscalAI reports. Flex had a return on equity of 23.15% and a net margin of 3.32%. The business had revenue of $8.49 billion for the quarter, compared to analyst estimates of $8.17 billion. During the same quarter in the previous year, the firm earned $0.79 EPS. The company’s quarterly 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 10.4%

Shares of FLEX stock traded up $8.69 during trading hours on Wednesday, hitting $92.03. The company had a trading volume of 7,068,853 shares, compared to its average volume of 4,840,919. The company’s fifty day moving average is $107.12 and its 200 day moving average is $102.40. The company has a debt-to-equity ratio of 0.95, a current ratio of 1.38 and a quick ratio of 0.89. Flex has a fifty-two week low of $53.07 and a fifty-two week high of $166.86. The stock has a market capitalization of $34.00 billion, a PE ratio of 35.53, a price-to-earnings-growth ratio of 0.39 and a beta of 1.67.

Analyst Upgrades and Downgrades

Several equities analysts have weighed in on the stock. Wall Street Zen upgraded shares of Flex from a “hold” rating to a “buy” rating in a report on Saturday, September 26th. Zacks Research downgraded shares of Flex from a “strong-buy” rating to a “hold” rating in a report on Tuesday, July 7th. JPMorgan Chase & Co. reduced their price target on shares of Flex from $175.00 to $160.00 and set an “overweight” rating on the stock in a research report on Thursday, July 30th. Freedom Capital upgraded Flex from a “hold” rating to a “strong-buy” rating in a report on Thursday, July 16th. Finally, Raymond James Financial set a $170.00 price objective on Flex and gave the company an “outperform” rating in a report on Wednesday, July 29th. One research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat, Flex presently has a consensus rating of “Moderate Buy” and a consensus target price of $128.70.

Insider Buying and Selling at Flex

In related news, insider Michael P. Hartung sold 2,755 shares of Flex stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $120.64, for a total value of $332,363.20. Following the completion of the sale, the insider owned 243,175 shares in the company, valued at approximately $29,336,632. This trade represents a 1.12% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders own 0.62% of the company’s stock.

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.