The 10-second takeaway
For the quarter ended March 31 (Q4), Flextronics International beat slightly on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly. Non-GAAP earnings per share dropped significantly. GAAP earnings per share dropped to a loss.
Gross margins grew, operating margins dropped, net margins dropped.
Flextronics International booked revenue of $5.30 billion. The 10 analysts polled by S&P Capital IQ expected to see sales of $5.20 billion on the same basis. GAAP reported sales were 17% lower than the prior-year quarter's $6.38 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 $0.13. The 11 earnings estimates compiled by S&P Capital IQ forecast $0.13 per share. Non-GAAP EPS of $0.13 for Q4 were 54% lower than the prior-year quarter's $0.28 per share. (The prior-year quarter included -$0.02 per share in earnings from discontinued operations.) GAAP EPS were -$0.04 for Q4 against $0.22 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 5.9%, 20 basis points better than the prior-year quarter. Operating margin was 1.7%, 90 basis points worse than the prior-year quarter. Net margin was -0.5%, 300 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $5.49 billion. On the bottom line, the average EPS estimate is $0.14.
Next year's average estimate for revenue is $24.00 billion. The average EPS estimate is $0.80.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 597 members out of 629 rating the stock outperform, and 32 members rating it underperform. Among 146 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 140 give Flextronics International a green thumbs-up, and six 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 $7.14.
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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. The Motley Fool has no position in any of the stocks mentioned. 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.