Yahoo Finance Flex Ltd (FLEX) Fiscal 2024 Earnings Review: Solid Performance with Adjusted EPS Exceeding ...
Net Sales: Reported $6.2 billion for Q4 FY 2024, exceeding estimates of $6099.51 million.
GAAP Net Income: Achieved $395 million from continuing operations in Q4 FY 2024, significantly surpassing the estimated $235.09 million.
GAAP Earnings Per Share: Recorded $0.93 from continuing operations for Q4 FY 2024, greatly exceeding the estimated $0.56.
Annual Net Sales: Totaled $26.4 billion for FY 2024, falling short of the annual estimate of $27801.19 million.
Annual GAAP Net Income: Reported $872 million from continuing operations for FY 2024, below the annual estimated $1064.01 million.
Annual GAAP Earnings Per Share: Recorded $1.98 from continuing operations for FY 2024, below the annual estimate of $2.51.
Fiscal Year 2025 Guidance: Projects revenue between $25.4 billion and $26.4 billion and adjusted EPS between $2.30 and $2.50.
On May 1, 2024, Flex Ltd (NASDAQ:FLEX) disclosed its financial results for the fourth quarter and the full fiscal year 2024, demonstrating robust performance and strategic financial management. The company announced these details through its 8-K filing. Flex Ltd, a pivotal player in the electronics manufacturing services industry, operates through segments that cater to a diverse range of industries including automotive, healthcare, and consumer electronics, with significant operations spread across various global markets such as China, Mexico, and the United States.
Fiscal Year 2024 Performance Highlights
For the fiscal year ended March 31, 2024, Flex reported net sales of $26.4 billion, slightly below the analyst expectations of $27.8 billion. The company's GAAP net income from continuing operations stood at $872 million, with an earnings per share (EPS) of $1.98, which contrasts with the adjusted net income of $947 million and an adjusted EPS of $2.15. This adjusted EPS notably surpasses the analyst projection of $2.11, highlighting an effective operational strategy and resilience in navigating market challenges.
The fourth quarter results were also impressive, with net sales amounting to $6.2 billion and an adjusted EPS from continuing operations at $0.57, aligning closely with the analyst estimates of $0.56. This consistency underscores Flex's ability to meet market expectations amidst varying economic conditions.
Analysis of Financial Statements
The detailed financial statements reveal a strategic emphasis on cost management and innovation. The gross profit for the fiscal year was $1.865 billion with operating income at $853 million. The balance sheet remains robust with total assets at $18.257 billion as of March 31, 2024, supported by a strong cash position of $2.474 billion, which ensures sufficient liquidity for ongoing operations and strategic initiatives.
The cash flow statement highlights operational efficiency with net cash provided by operating activities at $1.326 billion for the fiscal year. However, the company also reported significant cash used in financing activities, primarily due to repayments of debt and repurchases of shares, reflecting a proactive approach to capital management and shareholder returns.
Future Outlook and Guidance
Looking ahead to the first quarter of fiscal 2025, Flex anticipates revenue to be between $5.6 billion and $6.2 billion with an adjusted EPS ranging from $0.37 to $0.45. For the full fiscal year 2025, the company projects revenue to be in the range of $25.4 billion to $26.4 billion and an adjusted EPS between $2.30 and $2.50. These projections indicate a cautious yet optimistic outlook, considering ongoing global economic uncertainties and market dynamics.
Strategic Initiatives and Market Positioning
CEO Revathi Advaithi commented on the results, stating, "We delivered another quarter and fiscal year of solid performance, including strong margin expansion and EPS growth." This statement, coupled with the strategic initiatives outlined during their investor and analyst day, suggests a focused approach towards sustainable growth and value creation for stakeholders.
In conclusion, Flex Ltd's fiscal 2024 performance and forward-looking strategies reflect a resilient business model poised to capitalize on diverse market opportunities. The company's ability to exceed adjusted EPS expectations while maintaining robust financial health positions it favorably for future challenges and opportunities in the dynamic electronics manufacturing sector.
For detailed financial figures and further information, refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from Flex Ltd for further details.
This article first appeared on GuruFocus.
