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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