Flex Ltd (FLEX) Announces Q2 Fiscal 2024 Results and Plan to Spin-Off Nextracker
Flex Ltd (NASDAQ:FLEX) reported Q2 net sales of $7.5 billion and GAAP operating income of $376 million.
The company announced plans to spin-off its remaining interest in Nextracker to Flex shareholders.
Q3 Fiscal 2024 guidance anticipates revenue between $6.5 billion to $6.9 billion.
Updated Fiscal Year 2024 guidance estimates revenue between $28.1 billion to $28.8 billion.
On October 25, 2023, Flex Ltd (NASDAQ:FLEX) released its second quarter fiscal 2024 results, reporting net sales of $7.5 billion and GAAP operating income of $376 million. The company also announced its plan to spin-off its remaining interest in Nextracker to Flex shareholders.
Q2 Fiscal 2024 Performance
Flex Ltd (NASDAQ:FLEX) reported net sales of $7.5 billion for the second quarter ended September 29, 2023. The GAAP operating income stood at $376 million, while the adjusted operating income was $439 million. The GAAP net income attributable to Flex Ltd was $228 million, and the adjusted net income was $303 million. The GAAP earnings per share were $0.51, and the adjusted earnings per share were $0.68.
Company's Plan for Nextracker
Flex Ltd (NASDAQ:FLEX) also announced its plan to spin-off all of its remaining interest in Nextracker Inc. to Flex shareholders on a pro rata basis. The company expects that the completion of the spin-off will unlock meaningful value, giving Flex shareholders direct ownership of Nextracker in a tax-free manner for U.S. federal income tax purposes and provides Flex with increased strategic flexibility.
Q3 Fiscal 2024 Guidance
For the third quarter of fiscal 2024, Flex Ltd (NASDAQ:FLEX) expects revenue to be between $6.5 billion to $6.9 billion. The GAAP operating income is projected to be between $210 million to $260 million, and the adjusted operating income is expected to be between $375 million to $425 million. The GAAP EPS is anticipated to be between $0.25 to $0.34, and the adjusted EPS is expected to be between $0.57 to $0.65.
Fiscal Year 2024 Guidance
Flex Ltd (NASDAQ:FLEX) updated its fiscal year 2024 guidance, projecting total Flex revenue to be between $28.1 billion to $28.8 billion. The GAAP EPS is expected to be between $1.71 to $1.89, and the adjusted EPS is anticipated to be between $2.49 to $2.66.
Financial Tables Summary
The company's unaudited condensed consolidated statements of operations showed a GAAP net income attributable to Flex Ltd of $228 million for the three-month period ended September 29, 2023. The diluted earnings per share attributable to the shareholders of Flex Ltd were $0.51 on a GAAP basis and $0.68 on a non-GAAP basis.
For the six-month period ended September 29, 2023, the GAAP net income attributable to Flex Ltd was $414 million. The diluted earnings per share attributable to the shareholders of Flex Ltd were $0.92 on a GAAP basis and $1.24 on a non-GAAP basis.
Company's Performance Analysis
Flex Ltd (NASDAQ:FLEX) demonstrated a solid performance in the second quarter of fiscal 2024, with a focus on portfolio and margin expansion. The company's plan to spin-off its remaining interest in Nextracker indicates a strategic move to unlock its full value and provide shareholders with direct ownership. The company's guidance for the third quarter and the fiscal year 2024 reflects its confidence in continued growth and profitability.
Explore the complete 8-K earnings release (here) from Flex Ltd for further details.
This article first appeared on GuruFocus.
