San Jose, Calif.-based Flex reported profits of $61 million, or 11¢ per share, on sales of $5.8 billion for the 3 months ended March 31. That amounts to a 54.8% bottom-line slide as sales shrunk 3% compared with the same period last year.
Adjusted to exclude 1-time items, earnings per share were 29¢, while analysts on Wall Street were looking for adjusted EPS of 28¢. Revenue was on target with the street.
For the full year, Flex reported profits of $444 million, or 79¢ per share, on sales of $24.4 billion for the full fiscal year 2015. The company saw its bottom line slip 26.1% while sales shrunk 6.6% compared with the previous fiscal year.
Adjusted to exclude 1-time items, earnings per share were $1.14, 1¢ over what analysts on Wall Street were expecting to see. Revenue was under expectations by approximately $60 million.
Shares have dipped 3.3% in after hours trading, trading at $11.90.
“Fiscal 2016 profit and margin expansion continues to validate Flex’s portfolio evolution and sketch-to-scale strategy. This also marks our third consecutive year of adjusted operating profit and adjusted EPS expansion. We are committed to continuing this strong trend, and remain focused on driving a continuously richer mix of business across the entire Flex Platform,” CEO Mike McNamara said in a press release.
“Cash flow generation continues to be a hallmark for Flex, and a positive reflection of our culture of discipline and focused execution. We generated over $1.1 billion in operating cash flow and $639 million in free cash flow in fiscal 2016. This allowed us to continue fulfilling our commitment to consistently return value to our shareholders; this year we spent $420 million buying back almost 7% of our shares, representing an allocation of 66% of our fiscal 2016 free cash flow, CFO Chris Collier said in a prepared statement.
Flex released guidance for the coming quarter, forecasting revenue between $5.5 and $5.9 billion with EPS between 25¢ and 29¢ per share.