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Sep 29, 2023

Flex Q2 2024 Earnings Report

Announced plan to spin-off remaining interest in Nextracker to Flex shareholders and reported strong Q2 results driven by focus on portfolio and margin expansion.

Key Takeaways

Flex reported a strong second quarter for fiscal year 2024, with net sales of $7.5 billion and GAAP operating income of $376 million. The company announced a plan to spin-off its remaining interest in Nextracker to Flex shareholders.

Net sales were $7.5 billion.

GAAP operating income was $376 million.

Adjusted operating income was $439 million.

GAAP earnings per share was $0.51.

Total Revenue
$7.47B
Previous year: $7.77B
-3.8%
EPS
$0.68
Previous year: $0.63
+7.9%
Gross Profit
$665M
Previous year: $591M
+12.5%
Cash and Equivalents
$2.9B
Previous year: $2.45B
+18.2%
Free Cash Flow
$205M
Previous year: -$86M
-338.4%
Total Assets
$21B
Previous year: $20.6B
+1.7%

Flex

Flex

Forward Guidance

Flex provided guidance for the third quarter of fiscal year 2024, including revenue between $6.5 billion and $6.9 billion, GAAP EPS between $0.25 and $0.34, and adjusted EPS between $0.57 and $0.65.

Positive Outlook

  • Revenue: $6.5 billion to $6.9 billion
  • GAAP Operating Income: $210 million to $260 million
  • Adjusted Operating Income: $375 million to $425 million
  • GAAP EPS: $0.25 to $0.34
  • Adjusted EPS: $0.57 to $0.65

Challenges Ahead

  • Excludes $0.20 for net restructuring charges
  • Excludes $0.09 for stock-based compensation expense
  • Excludes $0.03 for net intangible amortization
  • Excludes ($0.01) for noncontrolling interest share of subsidiary’s non-GAAP adjustments
  • Uncertainties related to geopolitical risks, including the war in Ukraine and the Israel-Hamas war, which could negatively impact operations and financial performance.