Boston, MA 05/05/2014 (wallstreetpr) – Flextronics International Ltd. (NASDAQ:FLEX) is gaining momentum on increasing demand for game consoles. There is an increase in the Smartphone users that are going to rise with time. Both the factors are contributing to company’s profitability. It was clearly seen in the company’s fourth quarter results announced on Wednesday. The results came better than analysts’ expectations.
Xbox game consoles
The company is a contract electronics manufacturer. It makes the Xbox game console for Microsoft Corporation (NASDAQ:MSFT). The new Xbox was launched in the United States in November. The Xbox game consoles sales have cross more than five million units as of April17.
Google and the company
Apart from Microsoft the other big client of Flextronics International Ltd. (NASDAQ:FLEX) is Google Inc (NASDAQ:GOOGL). The company makes smartphones for Google. There are some issues creeping in between Google and Flextronics from the time Google agreed to sell its Motorola division to Lenovo group in January. The matters will be discussed and cleared once the deal is approved by the US and Chinese regulators. Lenovo is a client of Flextronics. Flextronics is into the manufacturing and assembling of desktop PC’s for Lenovo. The company is also involved in the production of networking and other electronics gear.
The financial performance
Flextronics International Ltd. (NASDAQ:FLEX) posted a higher profit and better than expected revenues on Wednesday. The net income came at $42.98 million as compared with a net loss of $49.32 million a year earlier. The earnings came at 24 cents per share as against the expectations of 20 cents per share. The revenues came at $6.72 billion which was again higher than the average estimate of $6.10 billion. Investors are happy with the stock’s performance as it is up by 17% in the last quarter.
The current quarter expectations
Flextronics International Ltd. (NASDAQ:FLEX) expects the adjusted earnings for the current quarter to come at 20-24 cents per share. The revenue is seen at $6.0-$6.5 billion. Overall, the strong momentum should continue in the next quarter.
