Flex Stocks Drop 7% Due to Disappointing Earnings Expectations and Weak Outlook

AUSTIN - Flex Ltd. (NASDAQ:FLEX) reported second-quarter earnings that surpassed expectations, but a revenue miss relative to analyst forecasts and disappointing guidance led to a 7.5% decline in shares after hours. The electronics manufacturer posted adjusted earnings of $0.64 per share, exceeding the analyst consensus of $0.57. However, the revenue of $6.5 billion fell short of the expected $6.53 billion and decreased by 5.6% year-over-year.

Flex anticipates third-quarter revenue in the range of $6 billion to $6.4 billion, which is below Wall Street's estimate of $6.53 billion. The company expects adjusted earnings per share between $0.60 and $0.66, compared to the consensus of $0.64.

Flex also lowered its full-year guidance, revising its previous projection down from $25.5 billion to $26.5 billion to a new estimate of $24.9 billion to $25.5 billion. This figure is below analysts' forecast of $25.82 billion. CEO Revathi Advaithi stated, "In the second quarter of the fiscal year, our teams once again delivered strong results. In this quarter, we announced the pending acquisition of Crown Technical Systems, which is a fantastic example of our growth strategy in higher value markets."