Flex Stock Surges 134.7% Ahead of Q1 Earnings, But Model Signals No Beat

Earnings
โดย Zacks Investment Research·Read original
Summary · why it matters

Flex Ltd. is set to report first-quarter fiscal 2027 results on Wednesday before market open, with the Zacks Consensus Estimate projecting revenues of $7.58 billion, a 15.3% increase from the year-ago quarter, and earnings of 93 cents per share, up 29.2% year over year. The company expects net revenues between $1.750 billion and $1.900 billion and adjusted earnings of $2.05 to $2.15 per share. Flex has beaten estimates in each of the last four quarters, delivering an average earnings surprise of 9.47%, and its stock has surged 134.7% over the past year, outperforming the Zacks Electronics - Miscellaneous Products industry's 68.4% gain as well as peers Cisco Systems, Jabil, and Sanmina. However, the Zacks model does not predict an earnings beat this time, as Flex carries an Earnings ESP of -1.29% and a Zacks Rank of 2. The company continues to benefit from robust AI infrastructure demand, with its Cloud and Power Infrastructure business emerging as the primary growth driver, and management targets 65-75% revenue growth for that segment in fiscal 2027, followed by more than 80% growth in fiscal 2028. Flex also completed the acquisition of Electrical Power Products and announced plans to spin off the CPI business into a standalone public company in the first quarter of calendar 2027. While weakness in the lifestyle business, high debt, and competition remain concerns, Flex's strong CPI outlook and reasonable valuation support its long-term prospects.

Impact on stocks 4

Artificial Intelligence▲ · 2 stocks
Flex Ltd
FLEX
▲ PositiveDemandrelevance

Robust AI infrastructure demand driving Cloud and Power Infrastructure business growth.

Semiconductors▲ · 1 stocks
Defense & Geopolitical Fragmentation▲ · 1 stocks

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