What happened

Shares of Flex (NASDAQ:FLEX) rose on Friday after the electronics manufacturing services provider reported its fiscal first-quarter results. While Flex's report was mixed relative to analyst estimates, the company's earnings guidance for the second quarter was above expectations. The stock was up about 12% at 10:40 a.m. EDT.

So what

Flex reported first-quarter revenue of $6.18 billion, down 3.5% year over year and $50 million below the average analyst estimate. Revenue grew in industrial and health solutions, but geopolitical issues in China led to weak revenue from a few telecom and networking customers, as well as a decline in automotive revenue.

A rising stock chart.

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Non-GAAP (adjusted) earnings per share came in at $0.27, up from $0.24 in the prior-year period and in line with analyst expectations. GAAP EPS was $0.09, down from $0.22 in the prior-year period, with the decline driven by restructuring charges.

Given the challenges facing the business, Flex is accelerating its portfolio mix strategy. The company is aiming to reduce exposure to high-volatility, low-margin business, while investing in design-led wins and higher-margin segments.

Now what

For the second quarter, Flex expects to report revenue between $6.1 billion and $6.5 billion, and non-GAAP EPS between $0.29 and $0.33. The company expects to post a loss on a GAAP basis, mostly due to additional restructuring charges.

The revenue guidance was a bit below expectations -- the consensus analyst estimate was $6.58 billion. But the earnings guidance was slightly better than the $0.30 per share analysts were expecting.

While Flex is facing some challenges, the company's solid earnings guidance was enough to send the stock higher.

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