Flex Cuts FY25 Earnings View, Backs Adj. EPS, Revenue Forecast; CFO To Resign; Stock Up

(RTTNews) - Diversified manufacturing company Flex Ltd. (FLEX), while reporting weak first-quarter results, on Wednesday issued second-quarter outlook, and trimmed fiscal 2025 earnings view on a reported basis. However, the company maintained annual forecast for adjusted earnings and revenues.

Flex also announced that Paul Lundstrom will step down as Chief Financial Officer effective July 31, to pursue an opportunity outside of Flex. At that time, Jaime Martinez will assume the role of Interim Chief Financial Officer.

In pre-market activity on the Nasdaq, Flex shares were gaining around 3.5 percent to trade at $30.76.

For the second quarter, the company expects earnings per share in the range of $0.40 to $0.48, and adjusted earnings per share of $0.52 to $0.60, on revenues of $6.2 billion to $6.8 billion.

Analysts on average expect the company to report earnings of $0.55 per share on revenues of $6.27 billion, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

For fiscal 2025, the company now expects earnings per share of $1.60 to $1.80, lower than previously expected $1.61 to $1.81.

The company continues to expect adjusted earnings per share of $2.30 to $2.50 on revenue of $25.4 billion to $26.4 billion.

The Street is looking for earnings of $2.38 per share on revenues of $25.78 billion for the year.

In fiscal 2024, earnings per share from continuing operations were $1.98 and adjusted earnings were $2.15 per share on net sales of $26.4 billion.

In the first quarter, the company's earnings dropped to $139 million or $0.34 per share from last year's $186 million or $0.41 per share. Adjusted earnings were $211 million or $0.51 per share for the period.

The company's revenue for the quarter fell 8.4 percent to $6.31 billion from $6.89 billion last year.

Analysts expected earnings of $0.41 per share on revenues of $5.9 billion for the quarter.

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