NEW YORK (TheStreet) -- Shares of Flextronics (FLEX) - Get Report were gaining 6.3% to $11.90 on Tuesday after the supply chain solutions company beat analysts' estimates for earnings in the second quarter of fiscal 2016.
Flextronics reported earnings of 27 cents a share for the fiscal second quarter, above analysts' estimates of 25 cents a share. Revenue fell 3.2% year over year to $6.32 billion for the quarter, but beat analysts' estimates of $6.17 billion.
"Our strong performance this quarter was reflected in our quarterly revenue growth, improved operating margins and our continued ability to operate with discipline," CEO Mike McNamara said in a statement. "We remain committed to our strategy of expanding our sketch-to-scale offering to include exciting new partnerships such as NIKE and others that clearly demonstrate Flex's ability to provide innovative solutions for many product categories that go beyond electronics."
Flextronics said it expects to report earnings of 28 cents to 34 cents a share and revenue of $6.2 billion to $6.8 billion for the fiscal third quarter. Analysts expect the company to report earnings of 29 cents a share and revenue of $6.61 billion for the quarter.
TheStreet Ratings team rates FLEXTRONICS INTERNATIONAL as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
We rate FLEXTRONICS INTERNATIONAL (FLEX) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, notable return on equity and good cash flow from operations. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
You can view the full analysis from the report here: FLEX