Flextronics International Limited (Flextronics) registered a slump in its 4Q 09 top-line and earnings, with both coming under our estimates for the quarter. The deteriorating global economic environment continues to impact consumer and IT spending, hindering the performance of players in the Electronics Manufacturing Services (EMS) industry in the near term. Given the lower-than-expected 1Q 09 results and our bleak outlook regarding…

We believe ongoing weaknesses in the global economy will continue to negatively impact consumer and IT spending over the medium term, constraining the EMS industry. While we believe a diversified and strategic customer base will support Flextronics’ Infrastructure segment’s performance to some extent, we expect the Consumer Digital segment to be severely impacted by the downturn in spending on consumer durables like LCD TVs, cameras and gaming equipment....

CLICK VIEW REPORT TO READ FREE REPORT

While Flextronics International Limited’s (Flextronics) 3Q 09 revenues were above our expectation, margins were in-line with our estimate. Going forward, Management’s 4Q 09 revenue guidance is inline with our forecast, however bottom-line guidance is below our estimate. In view of this, and given the ongoing uncertainty…