FLEX Earnings Prediction
The chart below shows how FLEX performed 10 days before and after its earnings report, based on data from the past quarters. Typically, FLEX sees a -1.80% change in stock price 10 days leading up to the earnings, and a +5.33% change 10 days following the report. On the earnings day itself, the stock moves by -0.02%. This data can give you a slight idea of what to expect for the next quarter's release.
FLEX Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
6.42B
-17.21%
-7.38%
Gross Margin
7.43%
1.23%
2.06%
Operating Margin
4.24%
0.95%
3.41%
Net Margin
2.01%
-34.31%
-30.69%
EPS
0.45
-10.00%
-11.76%
No Data Available
FLEX Earnings Analysis
Flex Ltd Corporation (FLEX.O) Earnings Conference Call
Positive
Revenue Increase Overview: Revenue reached $6.6 billion, marking a 2% increase year over year, driven primarily by strong performance in data center, health solutions, and consumer-related markets.
Operating Income Improvement: Operating income for the quarter was $399 million, with operating margins improving to 6.1%, a substantial year-over-year increase of 120 basis points, reflecting strong gross margin performance and effective cost execution.
Record EPS Growth: Adjusted earnings per share (EPS) increased by 43% year over year to a record $0.77, showcasing significant profitability growth.
Strong Free Cash Flow: Free cash flow for the quarter was $306 million, contributing to a fiscal year-to-date total of $757 million, positioning the company well to meet its full-year target of over $800 million.
Data Center Growth Surge: The data center business experienced robust growth of 45% year over year, with expectations for continued strong demand driven by AI and cloud expansion.
Negative
Slow Revenue Growth: Revenue growth of only 2% year-over-year to $6.6 billion, indicating a slowdown compared to previous quarters.
Reliability Solutions Revenue Stability: Reliability Solutions segment revenue remained flat at $3 billion, primarily due to challenges in the automotive sector, reflecting a weak macro environment.
Q4 Revenue Decline Guidance: Guidance for Q4 revenue is expected to decline to a range of $6.0 billion to $6.4 billion, suggesting a sequential moderation in growth.
Revised Revenue Guidance: Full year revenue guidance has been revised down to between $25.4 billion and $25.8 billion, indicating potential headwinds in achieving previous targets.
Q4 Adjusted EPS Decline: Adjusted EPS for Q4 is projected to decrease by 10% sequentially, reflecting a decline in profitability despite a year-over-year increase.
FLEX FAQs
How does FLEX typically perform around its earnings report dates?
Is Flex Ltd (FLEX) Q3 2024 Earnings Call Summary positive or negative?
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FLEX Earning Call Sentiment
Earnings call transcript: Flex Q3 2024 beats forecasts, stock dips
FLEX.O
-4.8%Positive
The earnings call reflects strong financial performance, including record high revenue, gross profit, and EPS, alongside a robust share repurchase program. Despite some concerns about economic factors and labor constraints, the company shows promising growth in the cloud and automotive sectors. The optimistic guidance for cloud business growth and medical devices, coupled with solid capital returns, suggests a positive stock price movement. However, lack of clarity on margin improvement breakdown and ASIC exposure might temper investor enthusiasm slightly, keeping the sentiment positive but not strong positive.
