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Flex Reports Third Quarter Fiscal 2024 Results
February 1, 2024 | FlexEstimated reading time: 2 minutes
Flex announced results for its third quarter ended December 31, 2023.
Third Quarter Fiscal Year 2024 Highlights:
- Net Sales: $7.1 billion
- GAAP Operating Income: $348 million
- Adjusted Operating Income: $477 million
- GAAP Net Income attributable to Flex Ltd: $197 million
- Adjusted Net Income attributable to Flex Ltd: $309 million
- GAAP Earnings Per Share: $0.45
- Adjusted Earnings Per Share: $0.71
An explanation and reconciliation of non-GAAP financial measures to GAAP financial measures is presented in Schedules II and V attached to this press release.
"Overall, fiscal Q3 was another quarter of strong execution," said Revathi Advaithi, CEO of Flex. "We continue to deliver on our commitments, and we are very well positioned in markets with strong, long-term secular drivers."
Fourth Quarter Fiscal 2024 Guidance
Fourth quarter FY24 guidance excludes Flex's 51.47% economic interest in Nextracker, which reflects the January 2, 2024 spin-off of all of Flex's remaining interest in Nextracker.
- Revenue: $5.8 billion to $6.4 billion
- GAAP Operating Income: $252 million to $302 million
- Adjusted Operating Income: $305 million to $355 million
- GAAP EPS: $0.38 to $0.48.
- Adjusted EPS: $0.50 to $0.60 which excludes $0.07 for stock-based compensation expense, $0.03 for net intangible amortization, and $0.02 for net restructuring charges.
Fiscal Year 2024 Guidance Updated - Total Flex
Fiscal year 2024 guidance includes Flex's economic interest in Nextracker for Q1 through Q3 FY24, and excludes it from Q4 FY24, which reflects the January 2, 2024 spin-off of all of Flex's remaining interest in Nextracker.
- Revenue: $27.7 billion to $28.3 billion
- GAAP EPS: $1.77 to $1.87
- Adjusted EPS: $2.47 to $2.57 which excludes $0.35 for stock-based compensation expense, $0.24 for net restructuring charges and $0.13 for net intangible amortization, offset by ($0.02) for tax, noncontrolling interest share of subsidiary's non-GAAP adjustments and other, compared to GAAP earnings per share.
In addition, we are providing fiscal year 2024 guidance for Core Flex to provide further transparency in our core business trends. Core Flex represents Flex, excluding Flex's economic interest in Nextracker for the entire FY2024. Core Flex is a non-GAAP measure that does not reflect discontinued operations presentation under GAAP.
Fiscal Year 2024 Guidance – Core Flex
- Revenue: $26.0 billion to $26.6 billion
- GAAP EPS: $1.42 to $1.52
- Adjusted EPS: $2.07 to $2.17 which excludes $0.26 for stock-based compensation expense, $0.24 for net restructuring charges, $0.13 for net intangible amortization and $0.02 for other compared to GAAP earnings per share.
- Completed Spin-off of remaining interest in Nextracker to Flex Shareholders
As previously announced, on January 2, 2024, Flex completed the spin-off of all of its remaining interest in Nextracker Inc. ("Nextracker") to Flex shareholders on a pro rata basis based on the number ordinary shares of Flex held by each shareholder of Flex (the "Distribution") as of December 29, 2023, which was the record date of the Distribution. Under the previously disclosed terms of the transaction, Flex shareholders received approximately 0.17 shares of Nextracker Class A common stock for every Flex ordinary share held as of the record date of the Distribution. Flex shareholders received cash in lieu of any fractional shares.
As a result of the completion of the spin-off, Nextracker became a fully independent public company, Flex no longer directly or indirectly holds any shares of Nextracker common stock or any securities convertible into or exchangeable for shares of Nextracker common stock and Flex will no longer consolidate Nextracker into its financial results. Following the spin-off, Flex ordinary shares continue to trade on Nasdaq under the ticker symbol "FLEX" and shares of Nextracker Class A common stock continue to trade on Nasdaq under the ticker symbol "NXT".
The historical results of Nextracker and certain assets and liabilities included in the spin-off will be reported in Flex's consolidated financial statements as discontinued operations beginning in Flex's fourth quarter ending March 31, 2024.
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