Electronics contract manufacturer Flex late Wednesday topped Wall Street's estimates for its fiscal third quarter. But its guidance for the current quarter was mixed, with its profit outlook missing views. Flex stock fell in extended trading.
The San Jose, Calif.-based company earned an adjusted 62 cents a share on sales of $7.76 billion in the December quarter. Analysts polled by FactSet predicted Flex earnings of 60 cents a share on sales of $7.52 billion. On a year-over-year basis, Flex earnings rose 24% while sales advanced 17%.
For the current quarter, Flex forecasts adjusted earnings of 51 cents a share on sales of $7.2 billion. That's based on the midpoint of its guidance. Analysts were looking for earnings of 52 cents on sales of $7 billion in the March quarter.
"We achieved another strong quarter through the focused efforts of the team, and strong execution against healthy demand," Chief Executive Revathi Advaithi said in a news release.
In after-hours trading on the stock market today, Flex stock fell 3.5% to 23.50. During the regular session Wednesday, Flex stock dipped 0.7% to close at 24.36. It hit a 21-year high of 25.12 on Jan. 17.
Plexus Sales, Outlook Come Up Short
Meanwhile, industry peer Plexus also reported results late Wednesday.
The Neenah, Wis.-based company earned $1.49 a share on sales of $1.09 billion in its fiscal first quarter ended Dec. 31. Earnings were in line with views, but Plexus missed Wall Street's sales target of $1.11 billion.
For the current quarter, Plexus predicted earnings of $1.15 a share on sales of $1.045 billion. That's based on the midpoint of its guidance. However, analysts were predicting earnings of $1.47 a share on sales of $1.12 billion.
Flex Stock Tops Leading Industry Group
Flex stock is tied for first place in IBD's Electronics-Contract Manufacturing industry group, according to IBD Stock Checkup. It shares a best-possible IBD Composite Rating of 99 with five other stocks in the group.
Those six highly rated companies are on the IBD Tech Leaders list. They are Celestica, Fabrinet, Flex, Plexus, Sanmina and TTM Technologies.
Flex stock also is on the IBD 50 list of top-performing growth stocks.
The electronics contract manufacturing group ranks ninth out of the 197 industry groups that IBD tracks. It has been among the top-rated groups for at least six months.
Electronics manufacturing services are center stage for a host of growth trends ranging from the reshoring of production to the boom in electric vehicles.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
