Flex (NASDAQ:FLEX) Posts Better-Than-Expected Sales In Q1 But Quarterly Revenue Guidance Misses Expectations
Is now the time to buy Flex? Find out in our full research report.
Flex (FLEX) Q1 CY2025 Highlights:
Revenue: $6.40 billion vs analyst estimates of $6.23 billion (3.7% year-on-year growth, 2.6% beat)
Adjusted EPS: $0.73 vs analyst estimates of $0.69 (5.2% beat)
Adjusted EBITDA: $443 million vs analyst estimates of $514.1 million (6.9% margin, 13.8% miss)
Management's revenue guidance for the upcoming financial year 2026 is $25.9 billion at the midpoint, missing analyst estimates by 0.8% and implying 0.3% growth (vs -2% in FY2025)
Adjusted EPS guidance for the upcoming financial year 2026 is $2.91 at the midpoint, beating analyst estimates by 1.8%
Operating Margin: 4.8%, up from 2.6% in the same quarter last year
Free Cash Flow Margin: 5%, down from 9.7% in the same quarter last year
Market Capitalization: $14.09 billion
"We had a very strong finish to the year, with record adjusted operating margins for both Q4 and for the full year, and we delivered our fifth consecutive year of double-digit adjusted EPS growth," said Revathi Advaithi, CEO of Flex.
Company Overview
Originally known as Flextronics until its 2016 rebranding, Flex (NASDAQ:FLEX) is a global manufacturing partner that designs, engineers, and builds products for companies across industries from medical devices to solar trackers.
Sales Growth
A company's long-term sales performance can indicate its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years.
With $25.81 billion in revenue over the past 12 months, Flex is a behemoth in the business services sector and benefits from economies of scale, giving it an edge in distribution. This also enables it to gain more leverage on its fixed costs than smaller competitors and the flexibility to offer lower prices. However, its scale is a double-edged sword because it's harder to find incremental growth when you've penetrated most of the market. To accelerate sales, Flex likely needs to optimize its pricing or lean into new offerings and international expansion.
As you can see below, Flex grew its sales at a sluggish 1.3% compounded annual growth rate over the last five years. This shows it failed to generate demand in any major way and is a rough starting point for our analysis.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
12 minutes ago
- Yahoo
Elbit Systems Awarded $1.635 Billion Contract to Deliver a Range of Defense Solutions to a European Country
HAIFA, Israel, Aug. 13, 2025 /PRNewswire/ -- Elbit Systems Ltd. (NASDAQ: ESLT) (TASE: ESLT) ("Elbit Systems" or the "Company") announced today that is has been awarded $1.635 Billion contract to deliver a range of defense solutions to a European country. The Implementation of the contract is expected to span over a 5-year period. The contract includes two groups of technologically advanced solutions from Elbit Systems. These solutions are based on the Company's cutting-edge technologies and portfolio and include embedded AI technology, among others. The first group includes long-range precision strike artillery-rocket systems and a broad-spectrum of unmanned reconnaissance and loitering aerial combat systems, from operational to tactical ranges, including personally operated drones. The second group includes, among others, highly sophisticated ISTAR capabilities, including SIGINT, COMINT and electronic warfare systems. Enabled intelligence collection and processing systems will also be delivered, along with advanced electro-optical (E/O) and night-vision systems, combat vehicle upgrade, and protective systems. In addition, Elbit Systems will deliver comprehensive military digitalization and Network Combat Solution, based on the last software generation and cutting-edge hardware communication equipment. This includes intelligence solutions from the C4ISR suite of command-and-control applications. This integrated solution covers all operational levels, spanning from the strategic army headquarters down to the tactical level, to the last combat vehicle. Bezhalel (Butzi) Machlis, President and CEO of Elbit Systems: "This contract reflects the strong demand for Elbit Systems' cutting-edge technologies in Europe and demonstrates our ability to deliver integrated, multi-domain solutions tailored to the needs of modern defense forces. Elbit Systems' comprehensive portfolio has proven itself operationally in the battlefield and is highly regarded by its users, and we are proud to support a European nation in strengthening its national security through this strategic partnership. This contract also includes industrial cooperation aimed to strengthen the buyer's national industrial capabilities in the mentioned areas." About Elbit Systems Elbit Systems is a leading global defense technology company, delivering advanced solutions for a secure and safer world. Elbit Systems develops, manufactures, integrates and sustains a range of next-generation solutions across multiple domains. Driven by its agile, collaborative culture, and leveraging Israel's technology ecosystem, Elbit Systems enables customers to address rapidly evolving battlefield challenges and overcome threats. Elbit Systems employs approximately 20,000 people in dozens of countries across five continents. The Company reported $1.9 billion in revenues for the three months ended March 31, 2025 and an order backlog of $23.1 billion as of such date. For additional information, visit: follow us on Twitter or visit our official Facebook, YouTube and LinkedIn Channels. Company Contact: Dr. Yaacov (Kobi) Kagan, Executive VP - CFOTel: + Daniella Finn, VP, Investor RelationsTel: + Dalia Bodinger, VP, Communications & BrandTel: + This press release may contain forward–looking statements (within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Israeli Securities Law, 1968) regarding Elbit Systems Ltd. and/or its subsidiaries (collectively the Company), to the extent such statements do not relate to historical or current facts. Forward-looking statements are based on management's current expectations, estimates, projections and assumptions about future events. Forward–looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions about the Company, which are difficult to predict, including projections of the Company's future financial results, its anticipated growth strategies and anticipated trends in its business. Therefore, actual future results, performance and trends may differ materially from these forward–looking statements due to a variety of factors, including, without limitation: scope and length of customer contracts; governmental regulations and approvals; changes in governmental budgeting priorities; general market, political and economic conditions in the countries in which the Company operates or sells, including Israel and the United States, among others, including the duration and scope of the current war in Israel, and the potential impact on our operations; changes in global health and macro-economic conditions; differences in anticipated and actual program performance, including the ability to perform under long-term fixed-price contracts; changes in the competitive environment; and the outcome of legal and/or regulatory proceedings. The factors listed above are not all-inclusive, and further information is contained in Elbit Systems Ltd.'s latest annual report on Form 20-F, which is on file with the U.S. Securities and Exchange Commission. All forward–looking statements speak only as of the date of this release. Although the Company believes the expectations reflected in the forward-looking statements contained herein are reasonable, it cannot guarantee future results, level of activity, performance or achievements. Moreover, neither the Company nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. The Company does not undertake to update its forward-looking statements. Elbit Systems Ltd., its logo, brand, product, service and process names appearing in this release are the trademarks or service marks of Elbit Systems Ltd. or its affiliated companies. All other brand, product, service and process names appearing are the trademarks of their respective holders. Reference to or use of a product, service or process other than those of Elbit Systems Ltd. does not imply recommendation, approval, affiliation or sponsorship of that product, service or process by Elbit Systems Ltd. Nothing contained herein shall be construed as conferring by implication, estoppel or otherwise any license or right under any patent, copyright, trademark or other intellectual property right of Elbit Systems Ltd. or any third party, except as expressly granted herein. Logo: View original content: SOURCE Elbit Systems Ltd.
Business Insider
25 minutes ago
- Business Insider
From Foes to Allies: The Unlikely Partnership Powering Opendoor's Comeback
In the summer of 2025, a rare alignment was formed between a hedge fund manager, a community of retail traders, and a public company on the brink. The story of Opendoor Technologies (OPEN) has become a case study in how three very different forces can converge around a shared goal, even as their relationship faces tests that may determine its long-term future. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Opendoor Technologies, known for its 'iBuying' model that uses data and algorithms to make instant cash offers on homes, saw its stock peak at $36 in 2021. It then fell sharply as rising interest rates and a frozen housing market pressured its balance sheet, bottoming at $0.51 in June 2025. With the risk of delisting from the Nasdaq, investor interest had all but vanished. A New Courtship Between Wall Street and Main Street A surprising twist began to transpire in July. Eric Jackson, founder of EMJ Capital, disclosed via X that he had begun buying shares between $0.70 and $0.80. He called Opendoor 'a potential 100-bagger' and set a public target of $82 per share. 'The business model Keith Rabois built works. The macro headwinds are flipping. Costs have been slashed,' Jackson wrote in his July 14 post, adding that he was inviting retail investors to join the campaign. His comment drew immediate engagement and shifted the conversation around the company. This outreach contrasted with the 2021 GameStop (GME) battle, when retail traders led by online personality 'The Roaring Kitty' fought against hedge funds with large short positions. In the case of Opendoor, Jackson was not opposing retail but actively courting them. This shift in tone created the first point of connection in what would become a three-sided relationship. As retail investors picked up the thread, the stock surged nearly 189% in a week, with trading volumes hitting records. 'If OPEN reaches $82, then CEO Carrie, all of Opendoor's executives, and well-known investor Eric Jackson will become billionaires,' wrote one retail trader, @Christo68098001. Another, @FancyMeoww, added, 'If @TheRoaringKitty by miracle joins us in our OPEN Opendoor movement, we may be going interstellar and break our $82 target with ease.' The Call for Change at the Top From that point, Jackson and retail traders began operating almost as a single voice. Jackson contributed valuation models comparing Opendoor to high-growth companies like Carvana (CVNA), projecting $12 billion in revenue by 2029 and applying multiples that could support his $82 target. Retail brought viral momentum and constant discussion of the stock across social media. However, the third side of the triangle, the company itself, was slower to engage. Carrie Wheeler, Opendoor's chief executive officer since 2022, had kept a low public profile. Jackson noted in August that Wheeler had made only one media appearance in 2.5 years. 'The only fix,' he posted, 'is to put me on the OPEN board within 10 days as the retail voice. If by August 20 the board stonewalls, I will consider selling every share.' Then, Opendoor's founder, Keith Rabois, entered the scene to take part in the discussion and pointed out criticism of Wheeler. 'She is utterly incompetent. She was a mediocre CFO. Tech companies should never be led by CFOs,' Rabois wrote. In another post, he referred to her as 'the worst CEO in America'. He suggested that Opendoor could benefit from both new leadership and favorable macro conditions, saying, 'New Fed Chairman and new CEO: Winning.' A Rare Response From the Top The coalition between Jackson, retail investors, and Rabois began to press for changes to governance, a pivot toward AI-driven cost savings, and a return of 'founder DNA' to the company. @quantum_trader, a retail account, wrote, 'Need to go ALL-IN on AI to further accelerate cost savings and supercharge revenue growth. This will lead to $82 PT set by @ericjackson.' In broad and general terms, the plan for Opendoor is to turn it into an 'AI-first housing company' built on its decade of proprietary data, from home valuations to location analytics. He and other activists want the company to move beyond traditional iBuying toward a machine learning–driven platform that cuts costs, grows revenue, and supports a target of $82 per share. In the meantime, the company reported positive EBITDA for the first time in years during its second quarter, and revenue exceeded consensus estimates. The stock traded near $2 by mid-August, a gain of about 300% from its June low. Yet guidance for the third quarter came in below expectations, which cooled momentum. Wheeler addressed the surge in attention in a rare X post, her first in four years. 'There's been a lot of new attention on Opendoor from investors recently. It's an incredible gift. I'm deeply thankful for every new shareholder who believes in what we're building,' she wrote. She described the company's expansion into agent partnerships and the launch of a product called Opendoor Cash Plus. She added, 'If that means thousands of people choosing to own part of Opendoor because they believe in the long-term value and transformation we're driving, I'm all in.' Momentum Meets the Need for Direction Jackson welcomed the outreach but emphasized that more was needed. 'We want a comprehensive plan articulated on how she plans to take the $0.51 company she's presided over for 2.5 years to the heights of $200 per share in 3 years,' he told 'We have a plan for that. Does she agree? Is she the one to take us there?' Other investors echoed this view. Randian Capital called Wheeler's post 'a step in the right direction' but pressed for an updated investor presentation and an AI-focused investor day. Opendoor board member Adam Bain responded on X to confirm that the team was working on these initiatives and called AI 'a big opportunity.' The interplay among Jackson, retail investors, and Opendoor's management remains in motion. The partnership between Jackson and retail has proven durable through earnings volatility, as both sides continue to see upside in operational improvements, macro tailwinds, and a potential strategic shift. The company, meanwhile, is signaling some openness to deeper engagement, but it remains to be seen whether it will adopt the activist coalition's roadmap. An Unfinished Story This alignment of hedge fund activism and retail enthusiasm is unusual in public markets, and may even mark a new era for the relationship between institutional and retail investors. It suggests that investor influence can take new forms when traditional boundaries are set aside. In the case of Opendoor, it has created a rare love triangle, where each side brings distinct qualities: Jackson's analytical rigor and media presence, retail's persistence and viral reach, and the company's platform and data assets. Whether the relationship will deepen into a long-term alliance or fracture over strategy will depend on the months ahead. As of now, all three remain in close orbit, linked by a shared belief that a business once left for dead can be revived, scaled, and valued far above its current market price. Is Opendoor a Good Stock to Buy? The Street's analysts are still not on board when it comes to Opendoor, with the stock boasting a Hold consensus rating. Out of eight recent ratings, only one analyst considers the OPEN stock as a Buy. That would be J.P. Morgan's four-star analyst, Dae Lee. The average price target stands at $1.27, implying a 45% downside from the current price.
Yahoo
42 minutes ago
- Yahoo
Software firm Sapiens to be acquired by Advent for $2.5 billion
(Reuters) -Israeli software company Sapiens International said on Wednesday that it will be acquired by private equity firm Advent for $2.5 billion in cash. Sapiens' shareholders will receive $43.50 per share in cash, a premium of about 47.5% over its last close of $29.50 on the Nasdaq on Tuesday. Sapiens will become a privately held company after the deal is completed, the company said. It offers software solutions to the insurance sector. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
