Shares of Flex Ltd. (NASDAQ:FLEX) plunged on Friday after the electronics manufacturing services provider reported mixed second-quarter results. The company missed analysts' estimate for revenue, announced an end to a partnership with Nike, disclosed that its CEO was retiring at the end of the year, and provided guidance that was below expectations. As of 11:30 a.m. EDT, the stock was down about 32%.
Flex reported second-quarter revenue of $6.7 billion, up 7% year over year but $80 million below the average analyst estimate. Non-GAAP earnings per share came in at $0.29, up from $0.27 in the prior-year period and $0.01 higher than analysts were expecting.
Along with its results, Flex announced that CEO Mike McNamara will retire at the end of the year. The company also disclosed that its efforts with Nike to make footwear manufacturing operations in Mexico feasible had failed, and that the operation would be shut down at the end of the year.
Flex expects to produce third-quarter revenue between $6.6 billion and $7.0 billion, and non-GAAP EPS between $0.29 and $0.33. Both ranges are below analyst expectations of $7.24 billion and $0.36, respectively.
For the full year, Flex sees revenue between $26 billion and $27 billion, and non-GAAP EPS between $1.05 and $1.15. Analysts were expecting full-year earnings of $1.23 per share. The company blamed component shortages, capacity constraints, and pressure in the automotive and industrial businesses for the weak guidance.
With a flurry of bad news to go along with a mixed quarter, it's no surprise that investors are pushing down the stock.