We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
FLEX Q4 Earnings and Revenues Beat Estimates, Increase Y/Y
Read MoreHide Full Article
Flex Ltd (FLEX - Free Report) reported fourth-quarter fiscal 2023 adjusted earnings of 57 cents per share, beating the Zacks Consensus Estimate by 11.8%. The bottom line grew 9.6% year over year.
Revenues increased 9% year over year to $7.5 billion, surpassing the consensus mark by 4.1%. The company benefited from strength across the Agility Solutions and Reliability Solutions segments.
In the past year, the stock has increased 34.8% against the sub-industry’s decline of 2.4%.
Image Source: Zacks Investment Research
Segment Details
The Flex Reliability Solutions Group comprises Health Solutions, Automotive and Industrial businesses. Revenues improved 14% year over year to $3.2 billion. Demand remained healthy across the business segment, partly offset by the semiconductor shortage.
The Flex Agility Solutions Group comprises Communications & Enterprise Compute or CEC and Lifestyle and Consumer Devices businesses. Revenues were up 5% year over year to $3.7 billion. Momentum in CEC business and cost saving efforts across Lifestyle and Consumer Devices business were the driving factors.
The Nextracker Group’s revenues rose 18% year over year to $0.5 billion.
Non-GAAP gross margin increased 60 bps on a year-over-year basis to 7.9% in the reported quarter.
Non-GAAP selling, general & administrative expenses, as a percentage of revenues, were 3.1%, which increased 10 bps from the prior-year period.
Non-GAAP operating margin expanded 60 bps year over year to 4.9%.
Adjusted operating margins of the Flex Agility Solutions Group and the Nextracker Group were 4.6% and 13.5%, up 40 bps and 850 bps, respectively, year over year. The Flex Reliability Solutions Group’s adjusted operating margin was 4.4%, down 50 bps.
Balance Sheet & Cash Flow
As of Mar 31, cash & cash equivalents totaled $3.29 billion compared with $2.57 billion as of Dec 31, 2022.
As of Mar 31, total debt (net of current portion) were $3.69 billion compared with $3.52 billion as of Dec 31, 2022.
In fourth-quarter fiscal 2023, the company generated cash flow from operating activities of $450 million and an adjusted free cash flow of $270 million.
In the quarter under review, FLEX repurchased shares worth $44 million.
Guidance
For first-quarter fiscal 2024, Flex expects revenues to be between $7 billion and $7.5 billion.
Management expects adjusted earnings in the range of 47-53 cents per share. Adjusted operating income is projected to be between $320 million and $350 million.
For fiscal 2024, Flex expects revenues to be between $30.5 billion and $31.5 billion. It anticipates adjusted earnings in the range of $2.35-$2.55per share. Adjusted operating margin is projected in the range of 4.9-5.1%
The Zacks Consensus Estimate for Badger Meter’s 2023 earnings has increased 4.7% in the past 60 days to $2.69 per share. BMI’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 5.3%. Shares of BMI have surged 79.4% in the past year.
The Zacks Consensus Estimate for WTS’ 2023 earnings has increased 5.3% in the past 60 days to $7.19 per share. The long-term earnings growth rate is expected to be 8%.
WTS’ earnings beat the Zacks Consensus Estimate in the last four quarters, the average surprise being 16.3%. Shares of WTS have gained 29.3% in the past year.
The Zacks Consensus Estimate for Blackbaud’s 2023 earnings is pegged at $3.68 per share, up 7.3% in the past 60 days. The long-term earnings growth rate is anticipated to be 10.4%.
Blackbaud’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 10.4%. Shares of BLKB have increased 37.2% in the past year.
See More Zacks Research for These Tickers
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
FLEX Q4 Earnings and Revenues Beat Estimates, Increase Y/Y
Flex Ltd (FLEX - Free Report) reported fourth-quarter fiscal 2023 adjusted earnings of 57 cents per share, beating the Zacks Consensus Estimate by 11.8%. The bottom line grew 9.6% year over year.
Revenues increased 9% year over year to $7.5 billion, surpassing the consensus mark by 4.1%. The company benefited from strength across the Agility Solutions and Reliability Solutions segments.
In the past year, the stock has increased 34.8% against the sub-industry’s decline of 2.4%.
Image Source: Zacks Investment Research
Segment Details
The Flex Reliability Solutions Group comprises Health Solutions, Automotive and Industrial businesses. Revenues improved 14% year over year to $3.2 billion. Demand remained healthy across the business segment, partly offset by the semiconductor shortage.
The Flex Agility Solutions Group comprises Communications & Enterprise Compute or CEC and Lifestyle and Consumer Devices businesses. Revenues were up 5% year over year to $3.7 billion. Momentum in CEC business and cost saving efforts across Lifestyle and Consumer Devices business were the driving factors.
The Nextracker Group’s revenues rose 18% year over year to $0.5 billion.
Flex Ltd. Price, Consensus and EPS Surprise
Flex Ltd. price-consensus-eps-surprise-chart | Flex Ltd. Quote
Operating Details
Non-GAAP gross margin increased 60 bps on a year-over-year basis to 7.9% in the reported quarter.
Non-GAAP selling, general & administrative expenses, as a percentage of revenues, were 3.1%, which increased 10 bps from the prior-year period.
Non-GAAP operating margin expanded 60 bps year over year to 4.9%.
Adjusted operating margins of the Flex Agility Solutions Group and the Nextracker Group were 4.6% and 13.5%, up 40 bps and 850 bps, respectively, year over year. The Flex Reliability Solutions Group’s adjusted operating margin was 4.4%, down 50 bps.
Balance Sheet & Cash Flow
As of Mar 31, cash & cash equivalents totaled $3.29 billion compared with $2.57 billion as of Dec 31, 2022.
As of Mar 31, total debt (net of current portion) were $3.69 billion compared with $3.52 billion as of Dec 31, 2022.
In fourth-quarter fiscal 2023, the company generated cash flow from operating activities of $450 million and an adjusted free cash flow of $270 million.
In the quarter under review, FLEX repurchased shares worth $44 million.
Guidance
For first-quarter fiscal 2024, Flex expects revenues to be between $7 billion and $7.5 billion.
Management expects adjusted earnings in the range of 47-53 cents per share. Adjusted operating income is projected to be between $320 million and $350 million.
For fiscal 2024, Flex expects revenues to be between $30.5 billion and $31.5 billion. It anticipates adjusted earnings in the range of $2.35-$2.55per share. Adjusted operating margin is projected in the range of 4.9-5.1%
Zacks Rank & Stocks to Consider
Flex currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader technology space are Badger Meter (BMI - Free Report) , Watts Water Technologies (WTS - Free Report) and Blackbaud (BLKB - Free Report) . BMI and BLKB sport a Zacks Rank #1 (Strong Buy) whereas WTS currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Badger Meter’s 2023 earnings has increased 4.7% in the past 60 days to $2.69 per share. BMI’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 5.3%. Shares of BMI have surged 79.4% in the past year.
The Zacks Consensus Estimate for WTS’ 2023 earnings has increased 5.3% in the past 60 days to $7.19 per share. The long-term earnings growth rate is expected to be 8%.
WTS’ earnings beat the Zacks Consensus Estimate in the last four quarters, the average surprise being 16.3%. Shares of WTS have gained 29.3% in the past year.
The Zacks Consensus Estimate for Blackbaud’s 2023 earnings is pegged at $3.68 per share, up 7.3% in the past 60 days. The long-term earnings growth rate is anticipated to be 10.4%.
Blackbaud’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 10.4%. Shares of BLKB have increased 37.2% in the past year.