Flex Q2 sales beat on acquisition boost

Flex

Wed 11:15

Overview
Manufacturing solutions provider's fiscal Q2 sales rose 25% yr/yr, beating analyst expectations
Adjusted EPS for fiscal Q2 reached $1.18, beating analyst expectations
Company advancing Cloud and Power Infrastructure spin-off and completed EPC Power acquisition

Outlook
Flex raises full-year net sales guidance to $34.9 bln-$35.9 bln from $33.7 bln-$35.2 bln
Company now expects full-year adjusted EPS of $4.84-$5.16, up from $4.42-$4.74
Flex forecasts Q3 net sales of $8.87 bln-$9.17 bln and adjusted EPS of $1.19-$1.25

Result Drivers
ACQUISITION IMPACT - Co said EPC Power acquisition completes its end-to-end Power portfolio and will be immediately accretive in fiscal 2027
SEGMENT SPIN-OFF COSTS - Co incurred separation costs related to planned Cloud and Power Infrastructure segment spin-off, impacting free cash flow

Company press release: ID:nPn89JP8Wa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Beat
$8.49 bln
$8.14 bln (9 Analysts)
Q2 Adjusted EPS
Beat
$1.18
$1.05 (10 Analysts)
Q2 EPS
 
$0.70
 
Q2 Net Income
 
$263 mln
 
Q2 Gross Profit
 
$812 mln
 
Q2 Operating Income
 
$414 mln
 
Q2 Pretax Profit
 
$370 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the electronic equipment & parts peer group is "buy"
Wall Street's median 12-month price target for Flex Ltd is $150.00, about 80% above its October 27 closing price of $83.35
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 32 three months ago

Reuters Recommended Reads
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Oct 27 - Illinois Tool Works Inc beats Q3 EPS estimates, raises 2026 outlook
Oct 28 - TE Connectivity Q4 sales beats on industrial, transportation segments growth

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)