Flextronics Swings To Q4 Profit - Update

(RTTNews) - Contract electronics manufacturer Flextronics International Ltd. (FLEX), Wednesday reported a swing to fourth-quarter profit, helped mainly by a significant revenue growth and lower restructuring charges. Both earnings and revenue for the quarter easily topped Wall Street estimates.

Moving ahead, the company detailed an outlook for the first quarter, the midpoint of which is indicated to miss analysts' current expectations.

Singapore-based Flextronics' reported fourth-quarter net income of $43.0 million or $0.07 a share, compared to a loss of $49.3 million or $0.08 a share a year ago.

On an adjusted basis, earnings for the quarter rose to $0.24 a share from $0.13 a share last year. On average, 13 analysts polled by Thomson Reuters expected earnings of $0.20 a share for the quarter. Analysts' estimates typically exclude special items.

For the quarter the company recorded restructuring charges of $34.6 million, compared to $124.7 million last year.

Flextronics sales for the quarter rose to $6.72 billion from $5.30 billion a year ago. Twelve analysts had a revenue estimate of $6.10 billion for the quarter.

Chief Executive Mike McNamara said, "While we are very pleased to have exceeded expectations for all three metrics this quarter, we remain focused on providing industry-leading, end-to-end supply chain solutions, driving growth and executing our strategy."

Looking ahead to the first quarter, the company expects adjusted earnings of $0.20 to $0.24 a share and revenues of $6.0 billion to $6.5 billion. Analysts currently see first-quarter profit of $0.23 a share on revenues of $6.28 billion.

FLEX closed Wednesday's trading at $8.99, up $0.06 or 0.67%, on the Nasdaq. The stock further gained $0.28 or 3.11%, in after-hours trade.