Flex Ltd. Reports Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended December 31, 2016; Provides Earnings Guidance for the Fourth Quarter Ending March 31, 2017; Provides Capex Outlook for the Year 2017
January 26, 2017 at 09:05 pm
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Flex Ltd. reported unaudited consolidated earnings results for the third quarter and nine months ended December 31, 2016. For the quarter, net sales were $6,114,999,000 against $6,763,177,000 a year ago. Income before income taxes was $140,242,000 against $126,550,000 a year ago. Net income was $129,469,000 against $148,910,000 a year ago. Earnings per share were $0.24 against $0.27 a year ago. Non GAAP earnings per share were $0.34 against $0.35 a year ago. Non-GAAP operating income was $223,106,000 against $236,083,000 a year ago. Non-GAAP net income was $182,945,000 against $196,422,000 a year ago. The Company generated net cash from operating activities of $469 million and free cash flow of $363 million. Net capital expenditures totaled $106 million, which was slightly below its depreciation level of $109 million.
For nine months, net sales were $18,000,337,000 against $18,646,187,000 a year ago. Income before income taxes was $271,907,000 against $385,446,000 a year ago. Net income was $232,690,000 against $382,737,000 a year ago. Earnings per share were $0.42 against $0.67 a year ago. Non GAAP earnings per share were $0.88 against $0.85 a year ago. Non-GAAP operating income was $610,287,000 against $591,485,000 a year ago. Non-GAAP net income was $483,613,000 against $483,760,000 a year ago. Net cash provided by operating activities was $1,013,188,000 against $939,772,000 a year ago. Purchases of property and equipment were $413,596,000 against $418,561,000 a year ago.
For the fourth quarter ending March 31, 2017, revenue is expected to be in the range of $5.5 to $5.9 billion, GAAP EPS is expected to be in the range of $0.17 to $0.21 and includes estimated restructuring charges $0.03, stock-based compensation expense $0.04, and intangible amortization $0.03. Adjusted EPS is expected to be in the range of $0.27 to $0.31 per diluted share.
The company now sees the fiscal 2017 CapEx to be roughly $500 million. Free cash flow is to be in the middle of its targeted range of $600 million to $700 million. The company continues to believe that the 8% to 10% range remains appropriate for this fiscal year.
Flex Ltd. is engaged in providing a portfolio of manufacturing solutions and services. The Company operates through three segments: Flex Agility Solutions (FAS), and Flex Reliability Solutions (FRS). The FAS segment is comprised of various end markets, such as Communications, Enterprise, and Cloud (CEC), including data infrastructure, edge infrastructure and communications infrastructure; Lifestyle, including appliances, consumer packaging, floorcare, micro mobility and audio; and Consumer Devices, including mobile and high velocity consumer devices. The FRS segment consists of end markets, such as Automotive, including mobility, autonomous, connectivity, electrification, and smart technologies; Health Solutions, including medical devices, medical equipment, and drug delivery; and Industrial, including capital equipment, industrial devices, and renewables and grid edge.
Flex Ltd. Reports Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended December 31, 2016; Provides Earnings Guidance for the Fourth Quarter Ending March 31, 2017; Provides Capex Outlook for the Year 2017