Flex Q2 Profit Tops View, Shares Up 7%

(RTTNews) - Flex (FLEX) Monday reported an drop in profit for the second quarter, as sales dropped. Nevertheless, earnings for the quarter trumped Wall Street estimates, as did revenues. The contract electronics manufacturer also detailed a strong outlook for the current quarter.

Following the news, shares of Flex rose over $0.79 or 7.05% in the after-hours trade.

Singapore-based Flex's second-quarter profit dropped to $123 million or $0.22 per share from $139 million or $0.23 per share a year ago.

Excluding items, adjusted earnings for the quarter were $0.27 per share, up from $0.26 per share last year. On average, 12 analysts polled by Thomson Reuters expected earnings of $0.25 per share for the quarter. Analysts' estimates typically exclude special items.

Flextronics' sales for the quarter dropped to $6.32 billion from $6.53 billion last year. Eleven analysts had a consensus sales estimate of $6.17 billion for the quarter.

"Our strong performance this quarter was reflected in our quarterly revenue growth, improved operating margins and our continued ability to operate with discipline," said Mike McNamara, chief executive officer at Flex.

Looking forward to the third quarter, the company expects adjusted earnings of $0.28 to $0.34 per share and revenues of $6.2 billion to $6.8 billion. Analysts currently estimate earnings of $0.29 per share on revenues of $6.61 billion for the quarter.