Flex (FLEX) to report earnings tomorrow: here is what to expect

What happened

Flex, a global manufacturing solutions provider, reports earnings Wednesday before the market opens. Last quarter revenue was $7.93 billion, up 20.6% year on year. Analysts expect revenue to grow 19.8% this quarter, and they have generally reconfirmed estimates over the last 30 days.

Confirmed

Global impact / market context

Flex beat revenue expectations last quarter and gave strong guidance. If growth reaches the expected 19.8%, it would show the business is still expanding quickly. Because Flex has a history of exceeding Wall Street's expectations, results could shape how investors view the company's outlook.

Analyst inference

Peers Knowles and Jabil already reported strong growth, up 20.3% and 28.6%, and both beat estimates. That suggests demand in electronic components and manufacturing is solid. Knowles shares traded down 3.6% despite its beat, which hints that investors may judge results against high expectations.

Analyst inference

What to watch

1. Flex's reported revenue and whether year-on-year growth meets the 19.8% figure the market expects, compared with the 4% increase in the same quarter last year. Confirmed
2. Watch whether Flex repeats its pattern of beating Wall Street expectations, since analysts reconfirmed estimates over the last 30 days and the company has a history of exceeding them. Proposed
3. Compare Flex's growth with peers Knowles and Jabil, whose revenue rose 20.3% and 28.6%, to judge whether Flex is gaining or losing ground in electronic components and manufacturing. Analyst inference

Evidence

• stockstory.org