Multi-Fineline Electronix, Inc.

Multi-Fineline Electronix recently reported record third quarter sales of its circuits as its customers see strong demand for smartphones and other electronic devices. The company has posted strong earnings surprises in 3 out of the last 4 quarters, beating by an average of 182.32%. Its forward P/E is only 10.66.

Company Description

Multi-Fineline Electronix, Inc. (MFLX - Snapshot Report), which calls itself MFLEX, is one of the world's largest producers of flexible printed circuits (FPC) and flexible printed circuit assemblies (FPCA).

The company's products are used in mobile phones, smart mobile devices, portable bar code scanners, personal digital assistants, computer/storage devices, and medical devices. MFLEX, headquartered in Anaheim, Cal., also has operations in Suzhou, China.

MFLEX Posts Record Third Quarter Revenue

On Aug 5, Multi-Fineline reported its third quarter sales jumped 61% to a third quarter record, and the second highest in company history, of $167.6 million from $104.1 million in the year ago period.

The company attributed the sales growth to higher sales from three of the company's key customers which manufacture portable electronic devices, particularly smartphones.

Net income was $8.8 million, or 34 cents per share, compared to a net loss of $6.7 million, or a loss of 27 cents per share, in the third quarter of 2007. The company missed analysts' estimates by a penny, as consensus estimates had called for 35 cents per share.

Multi-Fineline is Bullish About the Fourth Quarter

The company is optimistic about fourth quarter sales, primarily due to the strength of new smartphones. It expects fourth quarter sales to be significantly higher than the third quarter.

Consensus Estimates Rise for the Year

In response to the record third quarter, covering analysts have pushed consensus estimates higher for the final quarter of the year. Fourth quarter estimates rose 2 cents to 40 cents from 38 cents in the last 30 days.

For the full year, estimates rose 3 cents in the last month to $1.70 from $1.67 per share.

Value Fundamentals

MFLEX is a Zacks #1 Rank (Strong Buy) stock. It has strong value fundamentals, with a forward P/E of only 10.66. Its price-to-book is 1.46. The company also has a solid five-year return on equity (ROE) of 15.74%.