The 10-second takeaway
For the quarter ended June 29 (Q1), Flextronics International met expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share improved.
Margins expanded across the board.
Flextronics International reported revenue of $5.99 billion. The 11 analysts polled by S&P Capital IQ expected revenue of $6.07 billion on the same basis. GAAP reported sales were 21% lower than the prior-year quarter's $7.55 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.23. The 12 earnings estimates compiled by S&P Capital IQ averaged $0.22 per share. GAAP EPS of $0.19 for Q1 were 12% higher than the prior-year quarter's $0.17 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 6.0%, 70 basis points better than the prior-year quarter. Operating margin was 2.6%, 30 basis points better than the prior-year quarter. Net margin was 2.1%, 40 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $6.45 billion. On the bottom line, the average EPS estimate is $0.25.
Next year's average estimate for revenue is $25.59 billion. The average EPS estimate is $1.00.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 597 members out of 630 rating the stock outperform, and 33 members rating it underperform. Among 136 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 131 give Flextronics International a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Flextronics International is outperform, with an average price target of $8.26.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.