Summary
Flex Ltd. reported a solid third quarter for fiscal year 2021, with net sales reaching $6.72 billion, a 4% increase year-over-year. This growth was primarily driven by the Flex Agility Solutions (FAS) segment, which saw a 5.6% increase in net sales, benefiting from strong performance in Lifestyle and Consumer Devices. The Flex Reliability Solutions (FRS) segment also contributed with a 2.0% increase, bolstered by demand in Health Solutions and Automotive. For the nine-month period, net sales were $17.86 billion, a 5% decrease compared to the prior year, largely due to a significant drop in the Consumer Devices business within FAS, impacted by COVID-19 and strategic shifts. However, the FRS segment demonstrated resilience with a 2.4% increase, driven by Health Solutions and Industrial businesses. The company's gross profit margin improved by 50 basis points year-over-year for the quarter, reaching 7.2%, and by 130 basis points for the nine-month period, reaching 6.5%. This improvement reflects effective cost management and operational efficiencies, particularly in FAS. Despite ongoing challenges from COVID-19 and component shortages, Flex maintains adequate liquidity and is strategically repositioning its business segments for future growth.
Financial Highlights
51 data points| Revenue | $6.72B |
| Cost of Revenue | $6.24B |
| Gross Profit | $479.00M |
| SG&A Expenses | $223.00M |
| Operating Income | $240.00M |
| Interest Expense | $40.00M |
| Net Income | $208.00M |
| EPS (Basic) | $0.42 |
| EPS (Diluted) | $0.41 |
| Shares Outstanding (Basic) | 500.00M |
| Shares Outstanding (Diluted) | 508.00M |
Key Highlights
- 1Net sales for the three months ended December 31, 2020, increased by 4% to $6.72 billion compared to the prior year.
- 2The Flex Agility Solutions (FAS) segment showed a 5.6% increase in net sales for the quarter, driven by strong performance in Lifestyle and Consumer Devices.
- 3Gross profit margin improved to 7.2% for the quarter and 6.5% for the nine-month period, indicating effective cost management and operational efficiencies.
- 4The company reported a net income of $208 million for the three-month period, a significant increase from $111 million in the prior year, and diluted EPS of $0.41.
- 5For the nine-month period, net sales decreased by 5% to $17.86 billion, primarily due to declines in the Consumer Devices business within FAS.
- 6Flex is strategically realigning its business into two reportable segments: Flex Agility Solutions (FAS) and Flex Reliability Solutions (FRS).
- 7The company maintained a strong liquidity position with $2.6 billion in cash and cash equivalents as of December 31, 2020.