 | Your browser does not display parts of our website correctly. We use the latest technology available to provide you with a high quality experience; please upgrade your browser to its latest version to view the contents properly: |
Flex Ltd. (FLEX) provides technology, supply chain, and manufacturing solutions in Asia, the Americas, and Europe. 
It operates through three segments: Flex Agility Solutions (FAS), Flex Reliability Solutions (FRS), and Nextracker.
The FAS segment offers flexible supply and manufacturing system comprising communications, enterprise and cloud solution, which includes data, edge, and communications infrastructure; lifestyle solution including appliances, consumer packaging, floorcare, micro mobility, and audio; and consumer devices, such as mobile and high velocity consumer devices.
Its FRS segment provides complex ramps with specialized production models and critical environments, which comprise automotive including next generation mobility, autonomous, connectivity, electrification, and smart technologies; health solutions, such as medical devices, medical equipment, and drug delivery; and industrial solutions including capital equipment, industrial devices, and renewables and grid edge.
The Nextracker segment offers solar tracker and software solutions, which are used in utility-scale and ground-mounted distributed generation solar projects. In addition, it provides a broad array of services including design and engineering, component services, rapid prototyping, fulfillment, and circular economy solutions. The company was formerly known as Flextronics International Ltd. and changed its name to Flex Ltd. in September 2016. Flex Ltd. was founded in 1969 and is headquartered in Singapore.
Flex reported earnings of $0.60 per share on revenue of $7.47 billion for the fiscal second quarter ended September 2023. The consensus earnings estimate was $0.51 per share on revenue of $7.52 billion. The company beat consensus estimates by 17.65% while revenue fell 3.80% compared to the same quarter a year ago.
The company said, with the spin-off of Nextracker, it expects third-quarter non-GAAP earnings of $0.57 to $0.65 per share on revenue of $6.50 billion to $6.90 billion and fiscal year earnings of $2.49 to $2.66 per share on revenue of $28.10 billion to $28.80 billion. The current consensus earnings estimate is $0.64 per share on revenue of $8.05 billion for the quarter ending December 31, 2023 and $2.45 per share on revenue of $30.97 billion for the year ending March 31, 2024. Shares have formed a bullish "flag" following the announcement. After beating earnings expectations in their Q2 results and with the announcement of Nextracker, share prices should be trending higher.
Entry Point: $25.50
Stop Loss: $24.20
Trading Range: $18.72 to $28.90
Target Price: $28.00
