NEW YORK (TheStreet) -- Shares of Flextronics International (FLEX) - Get Report are up 6.05% to $11.21 today after the company reported 2015 fiscal third-quarter results yesterday that beat analysts' expectations.
The Singapore-based company reported non-GAAP EPS of 30 cents per share on revenue of $7.03 billion, surpassing earnings estimates of 24 cents on revenue of $6.2 billion.
For the fourth quarter ending March 31, revenue is expected to be in the range of $6 to $6.4 billion, and adjusted EPS is expected to be in the range of 23 cents to 27 cents per diluted share, the company said. Consensus analysis forecasts earnings of 24 cents on revenue of $6.22 billion, according to an average of analysts' estimates compiled by Reuters.
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Flextronics International is a end-to-end supply chain solutions company that delivers design, engineering, manufacturing and logistics services to a range of industries and end-markets, including telecom, medical, automotive, energy, and other electronic product categories, among others.
Separately, TheStreet Ratings team rates FLEXTRONICS INTERNATIONAL as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate FLEXTRONICS INTERNATIONAL (FLEX) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, good cash flow from operations, solid stock price performance and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- FLEX's revenue growth has slightly outpaced the industry average of 0.6%. Since the same quarter one year prior, revenues slightly increased by 1.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 41.53% over the past year, a rise that has exceeded that of the S&P 500 Index. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
- FLEXTRONICS INTERNATIONAL has improved earnings per share by 21.1% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, FLEXTRONICS INTERNATIONAL increased its bottom line by earning $0.58 versus $0.45 in the prior year. This year, the market expects an improvement in earnings ($1.01 versus $0.58).
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Electronic Equipment, Instruments & Components industry and the overall market, FLEXTRONICS INTERNATIONAL's return on equity exceeds that of both the industry average and the S&P 500.
- Net operating cash flow has significantly increased by 149.65% to $387.41 million when compared to the same quarter last year. In addition, FLEXTRONICS INTERNATIONAL has also vastly surpassed the industry average cash flow growth rate of 31.41%.
- You can view the full analysis from the report here: FLEX Ratings Report