Global manufacturing solutions provider Flex (NASDAQ: FLEX) will be reporting earnings this Thursday before market hours. Here’s what you need to know.
Flex beat analysts’ revenue expectations by 2.6% last quarter, reporting revenues of $6.40 billion, up 3.7% year on year. It was a mixed quarter for the company, with a decent beat of analysts’ full-year EPS guidance estimates but revenue guidance for next quarter meeting analysts’ expectations.
Is Flex a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Flex’s revenue to be flat year on year at $6.27 billion, improving from the 8.4% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.64 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Flex has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Flex’s peers in the tech hardware & electronics segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Jabil delivered year-on-year revenue growth of 15.7%, beating analysts’ expectations by 11.2%, and TD SYNNEX reported revenues up 7.2%, topping estimates by 4.4%. Jabil traded up 13.1% following the results while TD SYNNEX was also up 7.9%.
Read our full analysis of Jabil’s results here and TD SYNNEX’s results here.
There has been positive sentiment among investors in the tech hardware & electronics segment, with share prices up 5.1% on average over the last month. Flex is up 15.2% during the same time and is heading into earnings with an average analyst price target of $53.54 (compared to the current share price of $53.40).
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