Today’s Research Reports on Stocks to Watch: National Instruments and Flex
NEW YORK, NY / ACCESSWIRE / October 29, 2018 / National Instruments Corporation was a big gainer in Friday’s session after reporting third quarter results. Flex Ltd. reported its earnings for the second quarter that was mixed and also revealed an end to a Nike partnership and that its CEO is retiring at the end of the year. All of the above resulted in Flex going to a new 52-week low.
RDI Initiates Coverage on:
National Instruments Corporation
https://www.rdinvesting.com/report/?ticker=NATI
Flex Ltd.
https://www.rdinvesting.com/report/?ticker=FLEX
National Instruments Corporation shares were up almost 17% on Friday on about 2.8 million shares traded. The stock saw the big pop after the company, which makes tools and systems for scientists and engineers, reported third quarter financial results. The Company reported adjusted EPS of $0.45 per, much higher than the $0.28 expected by the street. CEO Alexander M. Davern said during the earnings call, "I'm once again, very proud of our execution in the quarter. Our focus on industries and applications where our platform was most valued has driven strong results in Q3, with orders up 13% year-over-year. Revenue in Q3 was $346 million, a new Q3 record, and up 8% year-over-year. In addition, our backlog increased by $14 million during the third quarter, improving our future visibility. We're delivering on our stated goals with non-GAAP net income up 49% year-over-year in the first 3 quarters. In Q3, we delivered 17% non-GAAP net margin, a record for any quarter in the company's history. I believe that we will hit our 18% non-GAAP operating margin goal in 2018. Our platform continues to position us well to both capitalize on strong market conditions and deliver greater systems level value to take advantage of the major growth opportunities in areas like 5G semiconductors and electric and autonomous vehicles. This differentiated market position gives me great confidence in our long-term ability to grow."
Access RDI’s National Instruments Corporation Research Report at:
https://www.rdinvesting.com/report/?ticker=NATI
Flex Ltd. shares were down a little over 35% this past Friday on about 70.5 million shares traded. Average trading volume for the stock is only around 5.7 million shares. The stock plummeted to a new low of $7.04 after the electronics manufacturing services provider reported mixed second-quarter results, revealed that it terminated a partnership with sports apparel company Nike and provided guidance below the market’s expectations. Not only that , the company's CEO is also retiring at the end of the year. It was a lot to take in for investors. For the second quarter, Flex reported revenue of $6.7 billion, a jump of 7% YOY but was $80 million below what analysts expected. Non-GAAP earnings at $0.29 were also up from $0.27 in the year ago quarter and were also better than the $0.28 that analysts had expected. The company said that it's CEO Mike McNamara will retire at the end of the year and that its partnership with Nike to make footwear manufacturing operations in Mexico would be shut down at the end of the year as well. For the 3rd quarter, the Company has guided for a revenue between $6.6 billion and $7.0 billion, and non-GAAP EPS between $0.29 and $0.33. Street’s expectations were much higher at revenue of $7.24 billion and EPS of $0.36.
Access RDI’s Flex Ltd. Research Report at:
https://www.rdinvesting.com/report/?ticker=FLEX
Our Actionable Research on National Instruments Corporation (NASDAQ: NATI) and Flex Ltd. (NASDAQ: FLEX) can be downloaded free of charge at Research Driven Investing.
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