Global manufacturing solutions provider Flex (NASDAQ: FLEX) will be reporting earnings this Wednesday before the bell. Here’s what investors should know.
Flex beat analysts’ revenue expectations last quarter, reporting revenues of $7.93 billion, up 20.6% year on year. It was an exceptional quarter for the company, with revenue guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ EPS guidance for next quarter estimates.
Is Flex a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Flex’s revenue to grow 19.8% year on year, improving from the 4% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Flex has a history of exceeding Wall Street’s expectations.
Looking at Flex’s peers in the electronic components & manufacturing segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Knowles delivered year-on-year revenue growth of 20.3%, beating analysts’ expectations by 6.9%, and Jabil reported revenues up 28.6%, topping estimates by 9.8%. Knowles traded down 3.6% following the results while Jabil was also down 6%.
Read our full analysis of Knowles’s results here and Jabil’s results here.
There has been positive sentiment among investors in the electronic components & manufacturing segment, with share prices up 3.9% on average over the last month. Flex is down 28.9% during the same time and is heading into earnings with an average analyst price target of $155.90 (compared to the current share price of $80.34).
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