Flextronics Posts Upbeat Q4 Earnings, But Revenue Misses Estimates

Shares of Flextronics International Ltd. (NASDAQ: FLEX) tumbled over 3 percent in after-hours trading after the company reported downbeat Q4 sales and issued a weak Q1 forecast. However, the company's earnings exceeded analysts' estimates.The Singapore-based company reported quarterly net income of $135 million, or $0.23 per share, compared to $43 million, or $0.07 per share, in the year-ago period. Its adjusted earnings per share rose 13 percent to $0.27 from $0.24 in the year-earlier period.Its revenue slipped $5.95 billion from $6.72 billion. However, analysts were expecting a profit of $0.25 per share on revenue of $6.27 billion. The average estimate among 6 Estimize users was for earnings of $0.26 per share and revenue of $6.33 billion.Its adjusted operating income slipped $4.0 million from the year-ago quarter, while operating margin widened 30 basis points to 3.0 percent from 2.7 percent."We continue to use our strong cash flow generation to consistently return value to our shareholders through repurchasing our shares," said Chris Collier, chief financial officer at Flextronics. "For fiscal 2015 we spent $416 million buying back almost 7% of our shares, representing an allocation of 75% of our fiscal 2015 free cash flow."For the fiscal first quarter, Flextronics expects adjusted earnings of $0.20 to $0.26 per share, on revenue of $5.6 billion to $6.2 billion. Analysts had projected earnings of $0.26 per share on revenue of $6.5 billion.Flextronics shares slipped 3.85 percent to $11.75 in the after-hours trading session.