Flextronics International Beats Analyst Estimates on EPS

Seth Jayson, The Motley Fool
Updated

Flextronics International (NAS: FLEX) reported earnings on July 25. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 29 (Q1), Flextronics International met expectations on revenue and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share improved.


Margins expanded across the board.

Revenue details
Flextronics International reported revenue of $5.99 billion. The 11 analysts polled by S&P Capital IQ expected revenue of $6.07 billion on the same basis. GAAP reported sales were 21% lower than the prior-year quarter's $7.55 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.23. The 12 earnings estimates compiled by S&P Capital IQ averaged $0.22 per share. GAAP EPS of $0.19 for Q1 were 12% higher than the prior-year quarter's $0.17 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 6.0%, 70 basis points better than the prior-year quarter. Operating margin was 2.6%, 30 basis points better than the prior-year quarter. Net margin was 2.1%, 40 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $6.45 billion. On the bottom line, the average EPS estimate is $0.25.

Next year's average estimate for revenue is $25.59 billion. The average EPS estimate is $1.00.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 597 members out of 630 rating the stock outperform, and 33 members rating it underperform. Among 136 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 131 give Flextronics International a green thumbs-up, and five give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Flextronics International is outperform, with an average price target of $8.26.

The article Flextronics International Beats Analyst Estimates on EPS originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement