Flextronics FY Q4 Revs In Line; EPS Beats By 3 Cents
Flextronics (FLEX) this afternoon reported strong results for its fiscal fourth quarter ended March 31.
The contract manufacturer reported FY Q4 revenues of $7.775 billion, in line with the Street at $7.78 billion. Adjusted EPS of 26 cents a share was better than the Street consensus by three cents.
For FY Q1, the company sees revenue of $8 billion to $8.5 billion, with adjusted EPS of 27-29 cents. The Street has been expecting $8.33 billion and 27 cents.
In a statement, Flextronics CEO Mike McNamara said that “better than expected operating performance is attributable in part to the successful integration of the Solectron acquisition,” asserting that it has been “one of the most successful large scale acquisitions ever completed in any industry.”
In after hours trade, FLEX is up 9 cents, at $10.45. The stock rose 20 cents in the regular session.
FLEX has been doing fairly well this past year and it should only be a matter of time before the stock starts to climb. They typically report strong earnings, but are going through some growing pains right now, which give some reasons to doubt the stock. I do really like this stock. I typically hold a position at earnings, FLEX typically beats earnings, the stock will rise to 12. I sell 1/2 of my position and gradually build up the other 1/2 of my position as the quarter continues. I am hesitant to sell it all off because I do feel it’s only a matter of time before this stock and 20 meet. Good job to the company.
It should keep moving up, but it will take some time before it gets to 20.
Mik,
This stock traded higher at this time last year on half the earnings and half the revenue. The only “X” factor here is the Solectron acquisition, which they are currently paying for. Once that is complete, things could turn good in a hurry. I would look to Q3 for the breakout.
Margins are terrible in this kind of business. Brutal competition. If the economy continues to be weak, I can’t see this stock going higher.
shorts covered 2 million shares in the last 24 hours.
There are still 17 million shorted shares.
17 million is a very big number !
Tech Trader Daily is a blog on technology investing written from Palo Alto, California by long-time Barron's West Coast Editor Eric J. Savitz. The blog provides news, analysis and original reporting on events important to investors in software, hardware, the Internet, telecommunications and related fields.
