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Flextronics says to miss estimates this quarter, next
(Adds comments from conference call, after-hours price)
LOS ANGELES, June 3 (Reuters) - Contract manufacturer Flextronics International Ltd. (NasdaqNM:FLEX - News) on Monday said it will miss Wall Street earnings and revenue estimates this quarter and next because technology spending is still depressed.
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Flextronics shares fell $1.31 or 10.6 percent, to $11.01 in after-hours trade on Instinet after closing at $12.32 on Nasdaq.
The company said it expects earnings per share before restructuring charges in the current quarter, its fiscal first, of 5 cents to 8 cents on revenue of $3 billion.
For the next quarter, its fiscal second, the company said it expects pro forma earnings per share of 7 cents to 10 cents on revenue of $3.2 billion.
The average estimate of brokers surveyed by Thomson First Call had been for pro forma earnings of 11 cents on revenue of $3.14 billion, while the estimate for the second quarter had been for earnings of 13 cents on revenue of $3.27 billion.
For the current quarter, the company had said in the past it expected revenue of $3 billion to $3.3 billion and earnings per share before charges of 10 cents to 13 cents.
But at the same time, the company said it remains optimistic, with Chief Executive Michael Marks saying on a conference call, "We are seeing many clear signs in our business that the end of the bottom is near."
Marks said business in products for the data communications and telecom industries is weaker than expected, with two customers completely cutting their orders for the current quarter as a way to decrease inventory.
Flextronics says to miss estimates this quarter, next
(Adds comments from conference call, after-hours price)
LOS ANGELES, June 3 (Reuters) - Contract manufacturer Flextronics International Ltd. (NasdaqNM:FLEX - News) on Monday said it will miss Wall Street earnings and revenue estimates this quarter and next because technology spending is still depressed.
ADVERTISEMENT
Flextronics shares fell $1.31 or 10.6 percent, to $11.01 in after-hours trade on Instinet after closing at $12.32 on Nasdaq.
The company said it expects earnings per share before restructuring charges in the current quarter, its fiscal first, of 5 cents to 8 cents on revenue of $3 billion.
For the next quarter, its fiscal second, the company said it expects pro forma earnings per share of 7 cents to 10 cents on revenue of $3.2 billion.
The average estimate of brokers surveyed by Thomson First Call had been for pro forma earnings of 11 cents on revenue of $3.14 billion, while the estimate for the second quarter had been for earnings of 13 cents on revenue of $3.27 billion.
For the current quarter, the company had said in the past it expected revenue of $3 billion to $3.3 billion and earnings per share before charges of 10 cents to 13 cents.
But at the same time, the company said it remains optimistic, with Chief Executive Michael Marks saying on a conference call, "We are seeing many clear signs in our business that the end of the bottom is near."
Marks said business in products for the data communications and telecom industries is weaker than expected, with two customers completely cutting their orders for the current quarter as a way to decrease inventory.
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