Market Overview

Flex's Earnings Outlook

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On Thursday, October 29, Flex (NASDAQ: FLEX) will report its last quarter's earnings. Here is Benzinga's preview of the company's release.

Net Income, Earnings, And Earnings Per Share

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Wall Street expects EPS of $0.27 and sales around $5.55 billion. In the same quarter last year, Flex posted EPS of $0.31 on sales of $6.09 billion.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to match the consensus estimate when it reports Thursday, EPS would have fallen 12.9%. Revenue would be down 8.84% from the same quarter last year. Here is how the company's EPS has stacked up against analyst estimates in the past:

Quarter Q1 2020 Q4 2020 Q3 2020 Q2 2019
EPS Estimate 0.17 0.24 0.34 0.30
EPS Actual 0.23 0.28 0.38 0.31
Revenue Estimate 4.94 B 5.48 B 6.25 B 6.29 B
Revenue Actual 5.15 B 5.48 B 6.46 B 6.09 B

Stock Performance

Shares of Flex were trading at $13.85 as of October 27. Over the last 52-week period, shares are up 14.47%. Given that these returns are generally positive, long-term shareholders are probably content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Flex is scheduled to hold the call at 17:00:00 ET and can be accessed here.

 

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Posted-In: Earnings