Dallas, Texas 10/10/2013 (Financialstrend) – Singapore based Flextronics International Ltd. (NASDAQ:FLEX). is a dominant player in the printed circuit board market. In September the stock of this $5.5 billion rallied strongly when news got out that the firm had won the lion share of contract from Microsoft to provide components for its flag ship gaming product the Xbox One. These games consoles are to hit the markets in the run up to the holiday season around November 22.
On the back of this positive news was the announcement coming out of the San Jose based firm that its 2Q operations results will be scheduled for October 29. Analysts are hoping that the company would be able to announce stronger results in comparison to 1Q. In its first quarter earnings call, the firm had called out a dip in sales and earnings per share over the previous quarter. Its sales had gone down by 3% where as the earnings per share had dipped by 55% in the same time period.
With close to 149 K employees on its payroll the tech component manufacturer is hoping to better its current gross margins and profit margins which hover around the 5.9% and 0.9% respectively.
As of close of business on October 9, the shares of the stock were down 1.1% from its previous day close. It is down close to 5% during trading last week and is down by close to 7.3% in the past 30 days. At current valuations the stock is trading 9.4% down from its 52 week high valuation and is up 60% from its 52 week low pricing. Institutions own close to 95% of its stock.
In a bid to diversify and increase its total addressable markets the company on October 1 announced further additions to its “energy infrastructure solutions” bucket. It hopes to tap into and service a host of new “original equipment manufacturers” (OEMs) through the new offering.