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FLEX's Subsidiary Nextracker Files for an IPO Offering
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Flex Ltd’s (FLEX - Free Report) subsidiary, Nextracker Inc, has filed a registration statement with the U.S. Securities and Exchange Commission for a proposed initial public offering (IPO) of shares of Nextracker's Class A common stock.
The common stock listing will be on the Nasdaq Global Select Market under the ticker symbol "NXT".
Nextracker is a company that designs, manufactures, and installs advanced solar tracking systems for utility-scale solar power plants. Their systems use software and hardware to optimize the alignment of solar panels with the sun throughout the day, increasing energy output and reducing the cost of solar power.
The proceeds from the IPO will likely be used as working capital to fund potential acquisitions and strategic investments and to repay debt.
The timing, number of shares to be offered and price range for the proposed offering have not yet been determined, and the offering is subject to market and other conditions.
JP Morgan, BofA Securities, Citigroup, and Barclays are joint book-running managers for the offering, and Truist Securities, HSBC, BNP PARIBAS, Mizuho, Scotiabank, and KeyBanc Capital Markets are joint book-running managers. SMBC Nikko, BTIG, UniCredit and Roth Capital Partners are also acting as co-managers.
Nextracker has been a major contributor to sales growth. In the second quarter, Nextracker group’s revenue went up 40% year over year to $0.5 billion, owing to strong industry demand amid panel availability shortage. Also, the adjusted operating margin was 9.1%, up 187 basis points, year over year.
Flex provides design, engineering, manufacturing and supply chain services to original equipment manufacturers in various industries, including aerospace and defense, automotive, healthcare, industrial, mobile and computing.
The industrial business is likely to gain momentum owing to ongoing secular trends. Also, the company’s Automotive segment is expected to gain traction owing to increasing demand for electric vehicles.
The company has raised its revenue outlook for fiscal 2023 owing to the above-mentioned factors. It now expects revenues between $29.1 billion and $30.1 billion compared with the earlier guidance of $28.4 billion to $29.4 billion.
However, stiff competition and rising uncertainties in the global macroeconomic environment are likely to affect margins.
At present, FLEX has a Zacks Rank #3 (Hold). Shares of the company have gained 31.6% in the past year against the sub-industry’s decline of 31%.
The Zacks Consensus Estimate for Arista Networks 2022 earnings is pegged at $4.37 per share, unchanged in the past 60 days. The long-term earnings growth rate is anticipated to be 17.5%.
Arista Networks’ earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 12.7%. Shares of ANET have declined 10.1% in the past year.
The Zacks Consensus Estimate for Jabil’s 2023 earnings is pegged at $8.31 per share, rising 1.6% in the past 60 days. The long-term earnings growth rate is anticipated to be 12%.
Jabil’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 8.8%. Shares of JBL have increased 8.7% in the past year.
The Zacks Consensus Estimate for Calix’s 2022 earnings is pegged at $1.06 per share, unchanged in the past 60 days.
Calix’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 19%. Shares of CALX have soared 17.2% in the past year.
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FLEX's Subsidiary Nextracker Files for an IPO Offering
Flex Ltd’s (FLEX - Free Report) subsidiary, Nextracker Inc, has filed a registration statement with the U.S. Securities and Exchange Commission for a proposed initial public offering (IPO) of shares of Nextracker's Class A common stock.
The common stock listing will be on the Nasdaq Global Select Market under the ticker symbol "NXT".
Nextracker is a company that designs, manufactures, and installs advanced solar tracking systems for utility-scale solar power plants. Their systems use software and hardware to optimize the alignment of solar panels with the sun throughout the day, increasing energy output and reducing the cost of solar power.
Flex Ltd. Price and Consensus
Flex Ltd. price-consensus-chart | Flex Ltd. Quote
The proceeds from the IPO will likely be used as working capital to fund potential acquisitions and strategic investments and to repay debt.
The timing, number of shares to be offered and price range for the proposed offering have not yet been determined, and the offering is subject to market and other conditions.
JP Morgan, BofA Securities, Citigroup, and Barclays are joint book-running managers for the offering, and Truist Securities, HSBC, BNP PARIBAS, Mizuho, Scotiabank, and KeyBanc Capital Markets are joint book-running managers. SMBC Nikko, BTIG, UniCredit and Roth Capital Partners are also acting as co-managers.
Nextracker has been a major contributor to sales growth. In the second quarter, Nextracker group’s revenue went up 40% year over year to $0.5 billion, owing to strong industry demand amid panel availability shortage. Also, the adjusted operating margin was 9.1%, up 187 basis points, year over year.
Flex provides design, engineering, manufacturing and supply chain services to original equipment manufacturers in various industries, including aerospace and defense, automotive, healthcare, industrial, mobile and computing.
The industrial business is likely to gain momentum owing to ongoing secular trends. Also, the company’s Automotive segment is expected to gain traction owing to increasing demand for electric vehicles.
The company has raised its revenue outlook for fiscal 2023 owing to the above-mentioned factors. It now expects revenues between $29.1 billion and $30.1 billion compared with the earlier guidance of $28.4 billion to $29.4 billion.
However, stiff competition and rising uncertainties in the global macroeconomic environment are likely to affect margins.
At present, FLEX has a Zacks Rank #3 (Hold). Shares of the company have gained 31.6% in the past year against the sub-industry’s decline of 31%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the broader technology space are Arista Networks (ANET - Free Report) , Jabil (JBL - Free Report) and Calix (CALX - Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks.
The Zacks Consensus Estimate for Arista Networks 2022 earnings is pegged at $4.37 per share, unchanged in the past 60 days. The long-term earnings growth rate is anticipated to be 17.5%.
Arista Networks’ earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 12.7%. Shares of ANET have declined 10.1% in the past year.
The Zacks Consensus Estimate for Jabil’s 2023 earnings is pegged at $8.31 per share, rising 1.6% in the past 60 days. The long-term earnings growth rate is anticipated to be 12%.
Jabil’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 8.8%. Shares of JBL have increased 8.7% in the past year.
The Zacks Consensus Estimate for Calix’s 2022 earnings is pegged at $1.06 per share, unchanged in the past 60 days.
Calix’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 19%. Shares of CALX have soared 17.2% in the past year.