FLEX - Flextronics International Ltd. (NASDAQ:FLEX)

May 1, 2012, 5:13 p.m. ET

Flextronics International Ltd.'s (FLEX) fiscal fourth-quarter earnings rose 16%, as the contract-electronics manufacturer benefited from lower overhead costs and taxes.

For the current quarter, the company forecast earnings of 20 cents to 24 cents a share on revenue of $5.9 billion to $6.3 billion. Analysts polled by Thomson Reuters had expected 25 cents a share on revenue of $6.72 billion.

Sales growth for the company, which makes electronic components as diverse as power supplies and LCD displays, has slowed down in recent quarters amid a sluggish economy. Flextronics in March agreed to sell certain assets of its camera module business to Tessera Technologies Inc.'s (TSRA) DigitalOptics Corp. unit for $23 million to focus more on power and advanced manufacturing. It also recently acquired Stellar Microelectronics, expanding its service offering for the aerospace, defense and medical manufacturing markets.

For the quarter ended March 31, Flextronics reported a profit of $156.7 million, or 22 cents a share, up from $135.3 million, or 17 cents a share, a year earlier. Excluding stock-based compensation and other items, earnings rose to 26 cents a share from 21 cents a share.

Revenue decreased 6% to $6.38 billion.

The Singapore-based company's January view called for adjusted earnings of 22 cents to 24 cents a share on revenue of $6.3 billion to $6.6 billion.

Gross margin edged up to 5.7% from 5.6%.

Overhead costs were down 10% and the company's tax payment dropped 59%.

Shares fell 1.2% to $6.69 in after-hours trading as the company projected fiscal first-quarter results below analysts' estimates.

Flextronics 4Q Profit Rises 16% Amid Lower Taxes, Overhead Costs - WSJ.com


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