Analysts Put Flextronics International Ltd.(NASDAQ:FLEX) On Hold Before Earnings Report

0
736

Dallas, Texas 04/22/2014 (FINANCIALSTRENDS) – Flextronics International Ltd. (NASDAQ:FLEX) is scheduled to report its fourth quarter and fiscal year FY 2014 earnings on April 30, 2014. Analysts have recently been leaning towards downgrading the company’s ratings and price targets downwards, but all that seems to have come to a screeching halt with a slew of hold ratings in the lead up to the earnings report.

Zacks Downgrades FLEX

Early in April, Zacks downgraded FLEX from “outperform” to “neutral” and that seems to have set the tone, with the company being put on hold by five of the ten ratings firms that cover FLEX. A bit of uncertainty before the annual earnings report is nothing to be concerned about.

Besides, the company’s share price has still not hit analyst price targets. FLEX is currently shuttling around in the $9.3 to $9.4 range, while analyst price targets are around the $11 range. For instance, Craig Hallum, which earlier this month upgraded FLEX from “hold” to “buy,” has set a price target of $11.

Citigroup Inc. likewise raised its price target for FLEX from $9 to $9.50, which again is higher than the current price. Zacks has a price target of $10.20 for FLEX.

Earnings Forecast

Of course, all this crystal ball gazing becomes a moot point when the earnings report is released at the end of the month. Flextronics needs to beat analyst estimates in order to shift gear and move from hold to buy once again.

If you’re looking at the historical data, you’ll see that the company reported an EPS of $0.26 in the previous quarter, beating the Thomson Reuters consensus estimate of $0.23 by three cents. The $7.18 billion in revenue for the quarter was likewise far above the consensus estimate of $6.70 billion. If Flextronics comes anywhere close to beating analyst estimates again, the stock will likely cross the $10 threshold once and for all, and start moving towards the price targets.

This report is for information purposes only, and is neither a solicitation or recommendation to buy nor an offer to sell securities. Financials Trend is not-a-registered-investment-advisor. Financials Trend is not a broker-dealer. Information, opinions and analysis contained herein are based on sources believed to be reliable, but no representation, expressed or implied, is made as to its accuracy, completeness or correctness. The opinions contained herein reflect our current judgment and are subject to change without notice. Financials Trend accepts no liability for any losses arising from an investor's reliance on the use of this material. Financials Trend sometimes gets compensated up to one hundred and fifty thousand dollars per month for featuring particular stocks. See site disclaimer for complete compensation. Financials Trend and its affiliates or officers currently hold no shares of these stocks. Financials Trend and its affiliates or officers will purchase and sell shares of common stock of these stocks, in the open market at any time without notice. Financials Trend will not update its purchases and sales of these stocks in any future postings on Financials Trend's websites. Certain information included herein is forward-looking within the context of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements concerning manufacturing, marketing, growth, and expansion. The words "may", "would," "will," "expect," "estimate," "anticipate," "believe," "intend," " project," and similar expressions and variations thereof are intended to identify for ward-looking statements. Such forward- looking information involves important risks and uncertainties that could affect actual results and cause them to differ materially from expectations expressed herein. *Financials Trend does not set price targets on securities. Never invest into a stock discussed on this web site or in this email alert unless you can afford to lose your entire investment.