Flex Ltd. (FLEX) shares are on the rise today, trading higher after the company released impressive second-quarter financial results that surpassed analyst expectations. The positive news sent ripples through the market, pushing the stock upwards.
Strong Q2 Performance Fuels Stock Surge
Flex, a leading electronics manufacturing services (EMS) provider, reported adjusted earnings per share of 64 cents, outpacing the consensus estimate of 56 cents. Revenue for the quarter also came in above expectations, reaching $6.545 billion compared to the street view of $6.532 billion.
The company’s strong performance was further highlighted by a robust gross profit of $531 million, an increase from the $519 million reported in the same period last year. Flex also ended the quarter with a healthy cash position, holding $2.601 billion in cash and equivalents. Inventories at the end of the quarter totaled $5.466 billion.
Upbeat Outlook Boosts Investor Confidence
Adding to the positive sentiment, Flex provided an optimistic outlook for the future. The company expects third-quarter revenues to range between $6.0 billion and $6.4 billion, slightly below the analyst estimate of $6.54 billion. However, Flex anticipates adjusted earnings per share in the range of $0.60 – $0.66, exceeding the consensus estimate of $0.65.
For the full fiscal year 2025, Flex has revised its revenue outlook to a range of $24.9 billion – $25.5 billion, down from the previous estimate of $25.4 billion – $26.4 billion but still above the analyst estimate of $25.78 billion. The company also raised its adjusted earnings per share guidance to between $2.39 and $2.51, up from $2.30 – $2.50 and surpassing the consensus estimate of $2.41.
Market Reaction: FLEX Shares Soar
The positive earnings report and optimistic guidance have been well-received by investors, driving FLEX shares higher by 3.17% to $35.77 at the last check on Wednesday. This upward trend indicates that investors are confident in Flex’s ability to navigate the current economic climate and maintain its growth trajectory.
Overall, Flex’s strong second-quarter results and upbeat guidance have solidified its position as a key player in the EMS industry. The company’s ability to outperform expectations and provide a positive outlook has instilled confidence in investors, leading to a significant increase in FLEX stock value.
