Flex Reports 1Q 2017 Results

Flex announced results for its first quarter ended July 1, 2016. Net sales for the first quarter were approximately $5.9 billion, which was at the high end of the guidance range of $5.5 to $5.9 billion.
 
GAAP income before income taxes was $117 million for the quarter and adjusted operating income was $190 million, at the mid-point of the guidance range of $175 million to $205 million. GAAP gross margin increased approximately 60 basis points and adjusted gross margin increased more than 50 basis points on a year-over-year basis.
 
For the three-month period ended July 1, 2016, Free Cash Flow was $121 million consisting of GAAP net cash flows from operating activities of $264 million less purchases of property and equipment net of proceeds from dispositions of $143 million. ]
 
“We continue to successfully execute our Sketch-to-Scale strategy,” said Mike McNamara, CEO of Flex. “Our first quarter results reflect our continued portfolio evolution with a 20% growth in adjusted operating profit, an increase of 17% in adjusted earnings, strong cash flow from operations and over seven million shares repurchased.”
 
For the second quarter ending September 30, 2016, revenue is expected to be in the range of $5.8 to $6.2 billion, GAAP EPS is expected to be in the range of $0.18 to $0.22 and includes estimated intangible amortization and stock-based compensation expense.  Adjusted EPS is expected to be in the range of $0.26 to $0.30 per diluted share.