Benzinga | Jul 29, 2021 11:29AM EDT

Flex Beats On Q1 FY22 Earnings, Issues In-Line Q2 Guidance

* Flex Ltd (NASDAQ:FLEX) reported first-quarter FY22 net sales growth of 23.1% year-on-year to $6.34 billion, beating the analyst consensus of $6.14 billion.

* The gross margin expanded by 153 bps to 7.4%.

* Non-GAAP EPS of $0.46 beat the analyst consensus of $0.38.

* Flex generated $334 million in operating cash flow and held $2.69 billion in cash and equivalents.

* Flex's strong Q1 performance exceeded its prior expectations due to broad-based demand across its portfolio and solid execution, delivering record Q1 adjusted operating margin and EPS, CEO Revathi Advaithi stated.

* Outlook: Flex sees Q2 revenue of $6.1 billion - $6.5 billion, versus the analyst consensus of $6.33 billion.

* It sees a non-GAAP EPS of $0.37 - $0.43 against the consensus of $1.57.

* It sees FY22 revenue of $25.50-$25.60 billion versus $25.66 billion consensus and adjusted EPS of $1.70-$1.85 versus the consensus of $1.70.

* Price action: FLEX shares traded lower by 0.53% at $16.87 on the last check Thursday.