This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Flextronics Pops on Call, Upgrade

Flextronics (FLEX - Get Report) rose in early trading Tuesday, after the stock was upgraded and estimates raised by Wells Fargo Securities following an upbeat midquarter conference call.

Recently, shares were up 55 cents, or about 5%, at $12.12.

Flextronics said on the call that it has seen demand increase in several sectors and that business was better than expected in July and has been strong in August. The company expects to save about $45 million in interest expense after a convertible debt offering and pending tender offer for senior subordinated notes.

Analyst Jim Savage said the company's confidence is warranted, partially because of the long-term advantages of a pending acquisition. Savage upped his investment rating on the stock to buy from hold with a $15 price target.

On Friday, the company announced that it will acquire Microcell Group, which makes mobile communications devices, for $80 million. Though Flextronics does not expect the deal to impact revenue substantially, Savage said he believes that in 2005, the company "should see revenue growth from new product ramps." He also noted that Flextronics should keep the engineering team that "forms the core of Microcell's talent," in order to see any long-term benefits from the deal.

Savage upped his second-quarter 2004 sales estimate to $3.5 billion from $3.3 billion and upped his adjusted EPS expectation to 7 cents from 6 cents. For full-year 2004, the analyst expects earnings of 34 cents a share on sales of $13.76 billion, raised from his prior estimates of $13.26 billion in revenue with earnings of 29 cents a share.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
FLEX $12.46 0.00%
AAPL $127.60 0.00%
GOOG $535.38 0.00%
FB $83.09 0.00%
YHOO $44.66 0.00%

Markets

DOW 18,034.93 +208.63 1.17%
S&P 500 2,100.40 +19.22 0.92%
NASDAQ 4,994.6020 +62.7870 1.27%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs