Summary
Flex Ltd. reported a modest increase in net sales for the three-month period ended June 30, 2017, reaching $6.0 billion, a 2% rise year-over-year. This growth was primarily driven by solid performance in the Consumer Technologies Group (CTG) and Industrial & Emerging Industries (IEI) segments, although partially offset by a decline in the Communications & Enterprise Compute (CEC) segment. While gross profit remained stable, the gross margin saw a slight decrease due to increased ramp-up costs for strategic relationships and production transitions. The company's strategic focus continues to be on shifting its portfolio towards higher-margin businesses with longer product life cycles, such as IEI and High Reliability Solutions (HRS).
Financial Highlights
49 data pointsBeta
Financial Statements
Beta
| Revenue | $6.01B |
| Cost of Revenue | $5.60B |
| Gross Profit | $406.93M |
| SG&A Expenses | $250.81M |
| Interest Expense | $29.00M |
| Net Income | $124.71M |
| EPS (Basic) | $0.24 |
| EPS (Diluted) | $0.23 |
| Shares Outstanding (Basic) | 530.27M |
| Shares Outstanding (Diluted) | 538.63M |
Key Highlights
- 1Net sales increased by 2% to $6.0 billion for the quarter ended June 30, 2017, compared to the prior year period.
- 2Gross profit increased slightly to $407 million, but gross margin decreased by 10 basis points to 6.8% due to ramp-up costs.
- 3The CTG and IEI segments showed significant sales growth, contributing positively to the overall revenue increase.
- 4SG&A expenses increased by $11 million to $251 million, primarily due to investments in design/engineering resources and acquisitions.
- 5The company repurchased $74 million of its ordinary shares during the quarter under its ongoing share repurchase program.
- 6Cash used in investing activities was $352 million, largely driven by the acquisition of AGM Automotive for $214 million.
- 7Free cash flow decreased significantly to $19 million from $121 million in the prior year's comparable period, impacted by higher investing activities.