Flex Ltd. Announces Unaudited Consolidated Earnings Results for Its First Quarter Ended June 29, 2018; Provides Earnings Guidance for the Second Quarter Ending September 28, 2018; Provides Tax Rate Guidance for the Fiscal Year 2019
July 25, 2018
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Flex Ltd. announced unaudited consolidated earnings results for its first quarter ended June 29, 2018. For the quarter, net sales were $6,423,956,000 compared to $6,008,272,000 a year ago. Income before income taxes was $141,637,000 compared to $145,509,000 a year ago. Net income was $116,035,000 compared to $124,710,000 a year ago. Earnings per share was $0.22 compared to $0.23 a year ago. Non-GAAP EPS was $0.24 compared to $0.24 a year ago. Non-GAAP operating income was $187,708,000 compared to $177,917,000 a year ago. Non-GAAP net income was $127,971,000 compared to $128,476,000 a year ago. Net cash used in operating activities was $671,808,000 compared to $695,756,000 a year ago. Purchases of property and equipment was $172,247,000 compared to $124,851,000 a year ago. Free cash flow was negative $185 million excluding the impact of the new standard as the Company has increased its investments into capital expenditures and net working capital to support its revenue growth.
For the second quarter ending September 28, 2018, revenue is expected to be in the range of $6.6 to $7.0 billion. Adjusted EPS is expected to be in the range of $0.26 to $0.30 per diluted share. GAAP EPS is expected to be in the range of $0.18 to $0.22 and includes stock-based compensation expense and intangible amortization. Adjusted operating income is expected to be in the range of $200 million to $230 million.
For the year, the company long term tax range of 10% to 15% remains unchanged, and The company anticipates executing to that range in fiscal 2019.
Flex Ltd. is engaged in providing a portfolio of manufacturing solutions and services. The Company operates through three segments: Flex Agility Solutions (FAS), and Flex Reliability Solutions (FRS). The FAS segment is comprised of various end markets, such as Communications, Enterprise, and Cloud (CEC), including data infrastructure, edge infrastructure and communications infrastructure; Lifestyle, including appliances, consumer packaging, floorcare, micro mobility and audio; and Consumer Devices, including mobile and high velocity consumer devices. The FRS segment consists of end markets, such as Automotive, including mobility, autonomous, connectivity, electrification, and smart technologies; Health Solutions, including medical devices, medical equipment, and drug delivery; and Industrial, including capital equipment, industrial devices, and renewables and grid edge.
Flex Ltd. Announces Unaudited Consolidated Earnings Results for Its First Quarter Ended June 29, 2018; Provides Earnings Guidance for the Second Quarter Ending September 28, 2018; Provides Tax Rate Guidance for the Fiscal Year 2019