Global manufacturing solutions provider Flex (NASDAQ: FLEX) will be reporting earnings tomorrow before market open. Here’s what investors should know.
Flex beat analysts’ revenue expectations by 5.7% last quarter, reporting revenues of $6.56 billion, up 2.1% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ EPS and full-year EPS guidance estimates.
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 grow 1.1% year on year to $6.23 billion, a reversal from the 11.7% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.69 per share.
Analysts covering the company have generally 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 four times over the last two years.
Looking at Flex’s peers in the electronic components & manufacturing segment, some have already reported their Q1 results, giving us a hint as to what we can expect. TTM Technologies delivered year-on-year revenue growth of 13.8%, beating analysts’ expectations by 4.6%, and Knowles reported a revenue decline of 32.7%, topping estimates by 2.5%. TTM Technologies traded up 16.5% following the results while Knowles was also up 2.6%.
Read our full analysis of TTM Technologies’s results here and Knowles’s results here.
There has been positive sentiment among investors in the electronic components & manufacturing segment, with share prices up 11.2% on average over the last month. Flex is up 30.2% during the same time and is heading into earnings with an average analyst price target of $44.15 (compared to the current share price of $36.54).
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