Benzinga - by Anusuya Lahiri, Benzinga Editor.
Flex Ltd (NASDAQ:FLEX) traded lower by about 9% at $26.08 per share at last check on Wednesday.
The manufacturing company reported a fiscal fourth-quarter 2024 net sales decline of 11.7% year-on-year to $6.17 billion.
It beat the analyst consensus estimate of $6.11 billion.
The diversified manufacturing company’s adjusted EPS of 57 cents beat the consensus of 56 cents. The stock price declined after the print.
The gross margin increased 43 bps to 7.1%.
The adjusted operating margin improved by 120 bps to 5.4%.
Outlook: Flex expects fiscal first quarter 2025 revenue of $5.6 billion – $6.2 billion against $6.17 billion analyst consensus estimate and adjusted EPS of 37 cents – 45 cents versus 54 cents analyst consensus estimate.
The company projects fiscal 2025 revenue of $25.4 billion – $26.4 billion against $26.27 billion analyst consensus estimate and adjusted EPS of $2.30 – $2.50 versus $2.47 analyst consensus estimate.
Analysts consider Flex to be an AI beneficiary stock pick. Microsoft Corp (NASDAQ:MSFT), Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) and Meta Platforms Inc (NASDAQ:META) are splurging on artificial intelligence tech. And Flex is expected to gain from the next Apple Inc (NASDAQ:AAPL) product cycle.
Flex stock gained 89% in the last 12 months. Investors can gain exposure to the stock via Vanguard Information Tech ETF (NYSE:VGT) and SPDR Portfolio Developed World Ex-US ETF (NYSE:SPDW).
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