Flextronics International Ltd. (NASDAQ: FLEX), a provider of
innovative design, engineering, manufacturing, real-time supply chain insight
and logistics services, today posted its third-quarter 2015 financial results,
marked by record adjusted earnings per share (EPS), an increase in operating
margin, and better-than-expected operating income.
Net sales for the third quarter ended December 31, 2015,
were approximately $6.8 billion, in line with the company’s previously provided
revenue guidance range of $6.2 billion-$6.8 billion. Adjusted EPS of $0.35
topped the company’s previously provided guidance range of $0.28-$0.34, and
represents the all-time highest quarterly adjusted EPS in the company’s
history.
Third-quarter adjusted operating income increased 20%
sequentially and 14% year-over-year to $236 million, edging the guidance range
of $195 million-$235 million. Adjusted operating margin expanded 40 basis
points sequentially and 60 basis points year-over-year to 3.5%.
“We continue to position our company as a leader in the IoT
space, and our third quarter demonstrated sequential growth across all four of
our business groups, resulting from new programs and an improving engagement
model,” Mike McNamara, chief executive officer at FLEX, stated in the news
release. “Operating margins improved both sequentially and year-over-year, a
testament to the stronger value proposition we are delivering to our customers.”
The company also reported $278 million in cash flow from
operations and $158 million in free cash flow during the quarter, which CFO
Chris Collier said “reflects our strong discipline and execution and enables
our consistent stock repurchase.”
For the fourth quarter ending March 31, 2016, Flex said it
expects non-GAAP EPS of $0.25-$0.31 on sales between $5.5 billion-$6.1 billion.
GAAP EPS is expected to be lower than the adjusted EPS guidance by
approximately $0.07 per diluted share for estimated intangible amortization and
stock-based compensation expense.
Flex management will hold an earnings call today at 5 p.m.
ET. The conference call will be broadcast via the Internet and may be accessed
by logging on to the company’s website at www.flextronics.com. Additional
information in the form of a slide presentation may also be found on the
company’s site, and a replay of the broadcast will remain available on the
company’s website afterward.
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