Flextronics beats by $0.03, beats on revs; guides Q4 EPS in-line, revs in-line; Announces workforce reduction
Reports Q3 (Dec) earnings of $0.26 per share, $0.03 better than the Capital IQ Consensus Estimate of $0.23; revenues rose 17.3% year/year to $7.18 bln vs the $6.7 bln consensus.
Adjusted operating income increased $28 million or 18% sequentially to $187 million. Free cash flow generation was $614 mln.
Workforce Reduction: During the fourth quarter of fiscal 2014 the company plans to reduce its workforce and initiate other cost reduction activities. As a result, the company expects to recognize approximately $30-$35 million in pre-tax cash charges comprised primarily of employee severance and benefit costs. These cost reduction activities will yield potential annualized savings of approximately $60 million principally to selling, general and administrative expenses through reduced employee expenses and lower operating costs.
Guidance: Co issues in-line guidance for Q4, sees EPS of $0.18-$0.22 vs. $0.19 Capital IQ Consensus Estimate; sees Q4 revs of $5.9-$6.3 bln vs. $5.99 bln Capital IQ Consensus Estimate.