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

Flex (NASDAQ:FLEX) announced its 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. The company had revenue of $8.49 billion for the quarter, compared to analyst estimates of $8.17 billion. During the same period in the previous year, the firm posted $0.79 earnings per share. The firm’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 Stock Up 9.6%

Shares of NASDAQ FLEX traded up $7.98 during midday trading on Wednesday, hitting $91.33. 6,070,666 shares of the company’s stock were exchanged, compared to its average volume of 4,836,591. The business’s fifty day moving average price is $107.12 and its two-hundred day moving average price is $102.40. Flex has a 12-month low of $53.07 and a 12-month high of $166.86.

Analyst Upgrades and Downgrades

Several equities research analysts have recently commented on FLEX shares. Weiss Ratings downgraded shares of Flex from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Thursday, September 17th. Barclays dropped their price objective on Flex from $203.00 to $144.00 and set an “overweight” rating on the stock in a research note on Thursday, July 30th. The Goldman Sachs Group decreased their price objective on shares of Flex from $154.00 to $145.00 in a research note on Friday, October 16th. Bank of America cut their target price on Flex from $180.00 to $150.00 and set a “buy” rating on the stock in a research note on Tuesday. Finally, JPMorgan Chase & Co. reduced their price objective on Flex from $175.00 to $160.00 and set an “overweight” rating for the company in a research note on Thursday, July 30th. One research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $128.70.

Insider Activity at Flex

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

About Flex

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.