Flextronics Profit Soars; Shares Up 11% - Update

(RTTNews) - Shares of Flextronics International Ltd. (FLEX) jumped over 11 percent in after-hours trade on Wednesday, after the contract electronics manufacturer reported a surge in profit for the third quarter on some significant growth in revenues. Both earnings and revenues for the quarter trounced Wall Street analysts' expectations.

Chief Executive Mike McNamara said, "We delivered strong sequential growth in revenue, operating profit dollars, net income, free cash flow, and EPS, and we remain focused on building the most powerful end-to-end supply chain solutions company in the world for the industries we serve."

Singapore-based Flextronics' third-quarter profit soared to $145.16 million or $0.23 per share from $47.35 million or $0.08 per share in the same period last year.

Adjusted earnings for the quarter were $187 million or $0.26 per share. On average, 14 analysts polled by Thomson Reuters expected earnings of $0.23 per share for the quarter. Analysts' estimates typically exclude special items.

Flextronics sales for the fourth quarter improved to $7.18 billion from $6.12 billion last year. Twelve analysts had a consensus revenues estimate of $6.70 per share for the quarter.

Looking ahead to the fourth quarter, the company expects adjusted earnings in the range of $0.18 to $0.22 per share and revenues between $5.9 billion and $6.3 billion. Analysts currently expect earnings of $0.19 per share with revenues of $5.97 billion for the quarter.

Additionally, Flextronics indicated plans to cut its workforce and implement other cost reduction measures during the fourth quarter, which it expects will result in annual savings of $60 million. Flextronics plans to record about $30 million to $35 million in pre-tax cash charges, which comprises primarily employee severance and benefit costs.

FLEX closed Wednesday's trading at $7.70, up $0.04 or 0.52%, on the Nasdaq. The stock further gained $0.87 or 11.30%, in after-hours trade.