Flextronics (FLEX) Stock Falls on Downbeat Q2 Guidance

Flextronics (FLEX) stock is sliding on Friday morning after the company posted solid Q1 revenue, but gave a lighter-than-expected forecast for the second quarter.
By Kaya Yurieff ,

NEW YORK (TheStreet) -- Shares of Flextronics Int'l (FLEX) - Get Report are dropping 2.28% to $12.84 late Friday morning after the company reported better-than-expected revenue for the 2017 fiscal first quarter, but provided a downbeat outlook for the second quarter.

After yesterday's closing bell, the supply chain solutions provider said it sees earnings per share between 26 cents and 30 cents on revenue of $5.8 billion to $6.2 billion.

Analysts are looking for earnings of 30 cents per share on revenue of $6.15 billion.

For the first quarter, Flextronics reported revenue of $5.88 billion, above Wall Street's projections of $5.7 billion. Adjusted earnings of 27 cents per share matched analysts' expectations.

"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," CEO Mike McNamara said in a statement.

Separately, TheStreet Ratings Team has a "Buy" rating with a score of B+ on the stock.

The company's strengths can be seen in multiple areas, such as its good cash flow from operations, solid stock price performance and notable return on equity.

The team believes its strengths outweigh the fact that the company has had sub par growth in net income.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: FLEX

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