shares rose Thursday after CEO Michael Marks said it should have no trouble reaching second-quarter financial targets, and the contract electronics manufacturer is approaching record levels of profitability.
In recent trading, shares of Flextronics were up 48 cents, or 4%, to $12.25.
Speaking during the company's regularly scheduled mid-quarter update, Marks said, "We've never been more bullish about our company...there's not much risk to the estimates."
Looking to the second quarter, the company told investors to expect a pro forma profit ranging from 15 cents to 18 cents a share on sales of $4.1 billion to 4.4 billion. For the third quarter, the company expects a pro forma profit of 21 cents to 24 cents a share on sales ranging from $4.4 billion to $4.7 billion.
Marks said the broad market for electronics "continues to be great." With exposure to many types of electronic products, including cell phones, Flextronics and its major competitors, including
are something of a bellwether for technology.
Despite his very bullish tone, Marks gave no indication that the company will provide an upside to the September quarter. Earnings, he said, should be close to the midpoint. And that could be a sore point for the market.
When Solectron reported
much-improved first-quarter earnings in July, but didn't provide enough guidance upside for investors, the stock took a nasty hit.
Asked if he expected to see any of the top-tier contract manufacturers attempt to buy each other in the near future, Marks said no, but added that a major acquisition a bit further out seems likely.