Stock fell 35%
The stock market has fallen significantly this month, wiping out most of the returns generated this year. The S&P 500 ETF (SPY) has fallen 8.7% in October, indicating a marginal return of 0.73% for 2018. Similarly, tech ETFs such as the PowerShares QQQ Trust (QQQ) and the Technology Select Sector SPDR Fund (XLK) have fallen 10.3% and 9.6% this month.
Flex (FLEX) crashed to its nine-year low of $7.09. The stock declined 35% on October 26 and is currently trading 64% below its 52-week high of $19.71. The company reported its second quarter of fiscal 2019 results on Friday.
While Flex missed analyst revenue estimates, it also announced that its partnership with Nike (NKE) has ended. Further, the company’s CEO, Mike McNamara, plans to retire by the end of this year. Flex stock has fallen 46% this month and over 60% in 2018.
Revenue of $6.7 billion reported in Q2
Flex reported revenue of $6.7 billion, a rise of 7% year-over-year. This was $80 million below average analyst revenue estimates. Flex reported non-GAAP (generally accepted accounting principles) EPS of $0.29 in the second quarter, which was higher than analyst estimates of $0.28 and up from EPS of $0.27 in the same quarter last year.
Flex has forecasted sales between $6.6 billion and $7 billion in the third quarter with EPS in the range of $0.29 and $0.33. These figures were below estimates of $7.24 billion for revenue and $0.36 for EPS.
Flex has been grappling with component shortages and capacity constraints this fiscal year that have pressured revenue and profit margins.