Flex (FLEX) has reported a 41.62 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $86.87 million, or $0.16 a share in the quarter, compared with $61.34 million, or $0.11 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $156.19 million, or $0.29 a share compared with $160.85 million or $0.29 a share, a year ago. Revenue during the quarter went up marginally by 1.56 percent to $5,862.60 million from $5,772.70 million in the previous year period. Gross margin for the quarter contracted 48 basis points over the previous year period to 6.56 percent. Total expenses were 97.73 percent of quarterly revenues, down from 98.35 percent for the same period last year. This has led to an improvement of 61 basis points in operating margin to 2.27 percent.
Operating income for the quarter was $132.79 million, compared with $95.40 million in the previous year period.
However, the adjusted operating income for the quarter stood at $204.96 million compared to $200.27 million in the prior year period. At the same time, adjusted operating margin improved 3 basis points in the quarter to 3.50 percent from 3.47 percent in the last year period.
"We remain committed to our Sketch-to-Scale strategy and are thrilled to have delivered 14 straight quarters of year-over-year operating margin expansion," said Mike McNamara, chief executive officer at Flex. “We have built a business model that generates outstanding cash flow consistently year after year. We have generated positive operating cash flow in 23 of our past 24 quarters. For the year, cash flow from operations totaled $1.15 billion and free cash flow was $660 million."
For the first-quarter 2018, Flex forecasts revenue to be in the range of $5,700 million to $6,100 million. The company expects diluted earnings per share to be in the range of $0.16 to $0.20. On an adjusted basis, the company expects diluted earnings per share to be in the range of $0.24 to $0.28.
Operating cash flow improves marginally
Flex has generated cash of $1,149.91 million from operating activities during the year, up 1.18 percent or $13.46 million, when compared with the last year. The company has spent $702.19 million cash to meet investing activities during the year as against cash outgo of $1,396.38 million in the last year. It has incurred net capital expenditure of $489.50 million on net basis during the year, down 1.50 percent or $7.45 million from year ago.
The company has spent $242.11 million cash to carry out financing activities during the year as against cash inflow of $249.64 million in the last year period.
Cash and cash equivalents stood at $1,830.68 million as on Mar. 31, 2017, up 13.88 percent or $223.11 million from $1,607.57 million on Mar. 31, 2016.
Debt moves up
Flex has witnessed an increase in total debt over the last one year. It stood at $2,952.14 million as on Mar. 31, 2017, up 6.40 percent or $177.59 million from $2,774.56 million on Mar. 31, 2016.
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