Electronics contract manufacturer Flex late Wednesday surpassed analyst expectations for its fiscal first quarter but came up short with its sales outlook for the current quarter. Flex stock dropped in extended trading.
Austin, Texas-based Flex earned an adjusted 57 cents a share on sales of $7.34 billion in the quarter ended June 30. Analysts polled by FactSet had expected earnings of 51 cents a share on sales of $7.28 billion. On a year-over-year basis, Flex earnings rose 6% while sales dipped a fraction.
For the current quarter, Flex forecast adjusted earnings of 58 cents a share on sales of $7.5 billion. That's based on the midpoint of its outlook. Wall Street had called for earnings of 58 cents a share on sales of $7.64 billion in the fiscal second quarter.
However, Flex guided slightly higher than analyst estimates for the full fiscal year. It expects to earn an adjusted $2.45 a share on sales of $31 billion, based on the midpoint of its forecast. Analysts had been targeting earnings of $2.43 a share on sales of $30.88 billion.
Flex Stock Slides After Report
In after-hours trading on the stock market today, Flex stock dropped a fraction to 28.25. During the regular session Wednesday, Flex stock slid 0.5% to close at 28.27.
"Our results this quarter demonstrate the strength of our diverse portfolio from a product, customer and geographic perspective," Chief Executive Revathi Advaithi said in a news release.
He added, "The many long-term secular trends and the solid foundation of our business give us confidence that we'll continue to effectively navigate a dynamic macro-environment, drive growth, and deliver value."
Flex stock is on IBD's Tech Leaders and Global Leaders lists.
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