Monday, January 21, 2013

Hot Technology Stock Flextronics drives 5% Gains

Flextronics International Ltd. (NASDAQ: FLEX) last month reported a significant rise in profit for the third quarter, primarily reflecting higher sales on better demand for its supply chain services and solutions.

The company’s net income for the third quarter gapped up to $198.29 million or $0.26 per share from $92.87 million or $0.11 per share in the previous year. The results for the quarter included stock-based compensation of $13.82 million, intangible amortization of $16.57 million and tax adjustment of $36.05 million. Prior-year results included stock-based compensation of $14.11 million, restructuring charges of $9.79 million, convertible debt interest expense of $3.89 million and intangible amortization of $21.44 million. The adjusted net income for the quarter was $193 million or $0.25 per share as compared to the adjusted net income for the prior-year quarter of $138 million or $0.17 per share. The net sales for the quarter increased 19% to $7.83 billion from $6.56 billion in the prior-year quarter. The return on invested capital for the quarter was 31.6% as compared to 26.7% last year. After adjusting for one-time items, the return on invested capital for the quarter was 33.6% as compared to 30.1% a year ago.

Mike McNamara, CEO of Flextronics, mentioned that “The breadth and strength of our competitive position continues to improve and is reflected in our value-added supply chain services and solutions being in high-demand”.

The company expects fourth-quarter adjusted earnings in the range of $0.21 to $0.23 per share. Earnings exclude quarterly intangible amortization and stock-based compensation expense of $0.04 per share. The fourth-quarter revenue is expected to be in the range of $7.1 billion to $7.4 billion.

Flextronics International stock is currently trading at $8.12. The stock is up 4.77% from its previous close. Flextronics International shares stock touched the high of $8.14 and lowest price in today�s session is $7.85.

The company stock traded in the range of $4.86 and $8.50 during the past 52 weeks. The company�s market cap is $6.17 billion.

Flextronics provides vertically-integrated advanced design and electronics manufacturing services to original equipment manufacturers.

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