Flex (NASDAQ:FLEX) stock fell ~4% on Thursday despite FQ3 results beating estimates and the company raising its fiscal 2023 revenue outlook.

Adjusted EPS grew +24% Y/Y to $0.62, while net sales increased +17.2% Y/Y to $7.76B. Both top and bottom line beat analysts estimates.

“We achieved another strong quarter through the focused efforts of the team, and strong execution against healthy demand,” said Flex CEO Revathi Advaithi.

GAAP operating income grew +27.9% Y/Y to $321M.

Outlook:

FQ4 fiscal 2023: The company expects revenue to be between $7B and $7.4B (consensus $7.07B).

Flex anticipates adjusted EPS to be in the range of $0.48 to $0.54 which excludes $0.06 for stock-based compensation expense, $0.04 for net intangible amortization, and $0.01 for Nextracker series A redeemable preferred units dividends payable in kind. (consensus EPS estimate for FQ4 $0.51).

Fiscal full year 2023 outlook: The company raised its revenue outlook to be between $29.9B and $30.3B, compared to prior guidance provided during FQ2 results of $29.1B to $30.1B (consensus $30.08B).

Flex sees adjusted EPS in the range of $2.27 to $2.33 which excludes $0.23 for stock-based compensation expense, $0.15 for net intangible amortization, $0.06 for other charges, and $0.05 for Nextracker series A redeemable preferred units dividends payable in kind. Prior outlook range was $2.20 to $2.35. (Consensus EPS Estimate for fiscal 2023 $2.29).

GAAP EPS is anticipated between $1.78 and $1.84 by the company.