Flex (NasdaqGS:FLEX) FY Conference December 09, 2025 08:30 AM ET Company ParticipantsRevathi Advaithi - CEOConference Call ParticipantsNone - AnalystNoneHere we go. Well, thank you all for joining us today. Excited to be spending time with you here, and we're fortunate to have our guest today for our conversation, the Chief Executive Officer of Flex Ltd, Revathi Advaithi.Revathi AdvaithiAdvaithi, but.Advaithi.Yes.God, sorry.Close enough.I know. I panicked right at the second. So maybe for those, not familia ...

Summary of Flex's Conference Call Industry Overview - The conference focused on the Electronics Manufacturing Services (EMS) industry, particularly the data center and cloud sectors, with a strong emphasis on AI and digital infrastructure trends [12][16][17]. Key Drivers of Growth 1. **AI and Data Center Demand**: - AI and data center-related services are expected to be significant growth drivers, impacting multiple business segments, including cloud and power [12][13]. - The data center business is projected to grow from $4.8 billion with a 50% growth rate to approximately $6.8 billion, reflecting a 35% growth rate this year [21][22]. 2. **Digital Infrastructure**: - Growth in digital infrastructure, including high-speed networking and satellite communications, is anticipated to positively impact Flex's networking business [16]. 3. **Automation**: - Increased focus on automation in industrial environments, including robotics and warehouse automation, is expected to drive growth [16][17]. 4. **Health Solutions**: - The rising prevalence of diabetes is positively affecting the health solutions business, particularly in continuous glucose monitors and GLP-1 devices [17]. Business Trends and Customer Insights - Flex has seen strong demand across all customer categories, including hyperscalers, colocation providers, and silicon providers [19]. - The company is experiencing a shift towards integrated solutions, with customers increasingly requesting modular designs for data centers [26][36]. - Conversations with hyperscalers have improved, with a focus on faster deployment and reduced lead times, achieving a 30% reduction in lead times for power solutions [36][52]. Competitive Landscape and Market Dynamics - Flex operates in a highly competitive environment but maintains a strong position due to its technology-agnostic approach and diverse partnerships [63][65]. - The company is witnessing unprecedented levels of investment in the data center space, which is creating opportunities for co-investment and new commercial models [67][71]. Financial Performance and Margin Outlook - Flex's fastest-growing business, the data center segment, operates at higher margins than the corporate average, with both Agility and Reliability segments achieving operating margins above 6% [112][114]. - The company is focused on continuing to expand margins through product growth, value-added services, and productivity improvements [121][122]. Supply Chain and Regionalization - The company has adapted to supply chain challenges by regionalizing its operations, with increased interest in U.S.-based manufacturing and other regions [94][96]. - While input costs may rise due to regionalization, Flex expects to maintain margins through pass-through pricing models [106][108]. Strategic Focus Areas - Flex is prioritizing investments in high-margin sectors, including health solutions and automotive, while managing capacity to align with customer demand [90][135]. - The company is committed to maintaining a balanced portfolio, focusing on higher-margin, longer product lifecycle businesses [128][130]. Conclusion - Flex is well-positioned for future growth, leveraging trends in AI, digital infrastructure, and automation while maintaining a disciplined approach to capital allocation and margin expansion [140][142].

AdaptHealth Corp. to Participate in Upcoming Investor Conference Share CONSHOHOCKEN, Pa.--(BUSINESS WIRE)--AdaptHealth Corp. (NASDAQ: AHCO) ("AdaptHealth†or the "Company†), a national leader in providing patient-centered, healthcare-at-home solutions including home medical equipment, medical supplies, and related services, announced today that they will participate in the BofA Securities Leveraged Finance Conference, being held in Boca Raton, FL, on Tuesday, December 2, 2025, including a fireside chat at ...

Core Insights - Abbott missed third-quarter revenue estimates due to weaknesses in its diagnostics and nutrition businesses, despite strong demand for medical devices [1][3] - The company is facing challenges from declining COVID-19 testing demand, new U.S. tariffs, and a freeze on foreign aid [1] Financial Performance - Total revenue for the quarter ended September 30 was $11.37 billion, slightly below analysts' estimate of $11.40 billion [3] - Adjusted profit per share was reported at $1.30, aligning with analysts' expectations [5] - Annual adjusted profit is now expected to be between $5.12 and $5.18 per share, a slight adjustment from the previous range of $5.10 to $5.20 [5] Business Segments - The medical devices segment outperformed estimates, driven by sales of heart devices and continuous glucose monitors [3] - The nutrition business, particularly the pediatric division, faced challenges due to competition and lawsuits related to its specialized formula for premature infants [4] Market Conditions - The diagnostics division is experiencing pricing pressure from China's procurement program, which purchases medical devices at significant discounts [2] - CEO Robert Ford indicated that growth in China is around 5% to 7% when excluding the diagnostics segment [2] - Current headwinds are viewed by RBC Capital Markets analysts as "transitory" [2][3] Regulatory Impact - Abbott expects a financial hit of under $200 million from current tariffs this year but does not anticipate a significant impact from the Section 232 probes into medical device imports [5]

Core Insights - Abbott reported higher quarterly revenue, attributed to strong demand for its medical devices, particularly continuous glucose monitors and heart devices [1] Group 1: Financial Performance - The increase in revenue was driven by robust sales in the medical devices segment [1] Group 2: Product Demand - Continuous glucose monitors and heart devices were highlighted as key contributors to the revenue growth [1]

Core Viewpoint - Dividend cuts can present investment opportunities, as the negative news is often already priced in, leading to potential undervaluation of assets [3][7]. Group 1: Market Reactions to Dividend Cuts - Wall Street analysts and individual investors often react negatively to dividend cuts, leading to knee-jerk selling of affected funds [2][3]. - BlackRock Health Sciences Term Trust (BMEZ) experienced a dividend cut, prompting some investors to sell, but this creates opportunities for contrarian investors [3][5]. Group 2: Closed-End Funds (CEFs) Dynamics - CEFs operate differently from ETFs or mutual funds, raising a fixed pool of capital at launch, which can lead to inefficiencies in trading [4]. - When investors sell CEF shares without considering underlying assets, discounts can widen, creating buying opportunities for savvy investors [4][7]. Group 3: BMEZ Fund Characteristics - BMEZ currently yields 9.2% and trades at an 11% discount to its net asset value (NAV), indicating a potential buying opportunity [7][12]. - The fund's portfolio includes biotech and medical device companies that may benefit from a favorable regulatory environment [6][8]. Group 4: Key Holdings and Performance - Alnylam (ALNY), a top holding in BMEZ, focuses on innovative RNA interference therapies and has seen significant stock gains under previous administration policies [8][9]. - Veeva Systems (VEEV), another key holding, has also performed well historically, benefiting from a favorable mergers and acquisitions environment [9][10]. - Dexcom (DXCM), the third largest holding, produces continuous glucose monitors and has experienced substantial stock growth [11]. Group 5: Future Outlook - The current administration's policies may support the healthcare sector, particularly for companies in BMEZ's portfolio, which could lead to further growth [12].

Core Insights - Tenet Healthcare Corporation (THC) reported strong second-quarter 2025 results with adjusted earnings per share (EPS) of $4.02, exceeding estimates by 41.6% and showing a year-over-year increase of 74% [1][10] - Net operating revenues rose 3.2% year over year to $5.3 billion, surpassing consensus estimates by 2.4% [1][10] Financial Performance - Adjusted net income for the quarter was $369 million, a 63.3% increase year over year [3] - Adjusted EBITDA improved 18.6% year over year to $1.1 billion, exceeding estimates [3] - Adjusted EBITDA margin increased by 280 basis points to 21.3% [3] Segment Performance - Hospital Operations and Services segment generated net operating revenues of $4 billion, a 0.9% year-over-year increase, beating estimates [5] - Ambulatory Care segment saw net operating revenues rise 11.3% year over year to $1.3 billion, also exceeding estimates [7] Cost and Expenses - Total operating costs increased 2.3% year over year to $4.5 billion, primarily due to higher supplies expenses [4] Cash Flow and Financial Position - Cash and cash equivalents stood at $2.6 billion, down 13.1% from the end of 2024 [9] - Net cash from operations for the first half of 2025 was $1.8 billion, a 31.4% increase year over year [12] Share Repurchase and Guidance - THC repurchased shares worth $747 million in Q2 2025 and increased the share repurchase program by $1.5 billion [13] - The company raised its 2025 adjusted EPS guidance to $15.55-$16.21, indicating a 33.7% rise from the previous year [18]

Financial Data and Key Metrics Changes - Global sales for the first quarter of 2025 were $3.2 billion, down 0.1% compared to the first quarter of 2024, with a 1.5% decrease attributed to foreign currency exchange and a 1.2% growth from acquisitions [27][28] - GAAP operating margin improved by 81 basis points to 5.53%, while non-GAAP operating margin increased by 14 basis points to 7.25% [28] - GAAP net income for the first quarter was $110 million or $0.88 per diluted share, compared to $93 million or $0.72 per diluted share in the prior year [28] - Non-GAAP net income was $143 million or $1.15 per diluted share, compared to $143 million or $1.10 per diluted share in the prior year [29] Business Line Data and Key Metrics Changes - U.S. Dental merchandise sales grew low single digits, while U.S. Dental equipment sales declined by 8.9% due to a deferral of approximately $20 million in sales from Q4 2023 to Q1 2024 [30][31] - U.S. Medical distribution sales grew by 4.7% after excluding PPE products and COVID test kits, with Home Solutions business experiencing a total sales growth of 23% [32] - Global Specialty Products Group saw constant currency sales growth of 4.3%, benefiting from acquisition growth primarily from TriMed [33] Market Data and Key Metrics Changes - International Dental merchandise constant currency sales grew by 1.1%, while international Dental equipment constant currency sales grew by 4.3%, driven by strong growth in Canada and Central Europe [32][33] - The U.S. implant market was slightly down in Q1 2025, with strong sales growth in the DACH region and Latin America [20][21] Company Strategy and Development Direction - The company is advancing its Bold Plus One strategic plan, focusing on growing the distribution business, enhancing customer experience, and developing digital solutions [10][11] - The establishment of two main business units: Global Distribution and Value Added Service Group, and Global Technology Group, is aimed at improving operational efficiency [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the fundamentals of the business, noting good sales performance in February and March following a slow January due to weather-related events [8][10] - The company expects to achieve high single-digit to low double-digit earnings growth by executing its strategic plan [10] Other Important Information - The company repurchased approximately 2.3 million shares of common stock during the first quarter at an average price of $71.58 per share, totaling $161 million [35] - The company is maintaining its 2025 financial guidance, expecting non-GAAP diluted EPS to be in the range of $4.80 to $4.94 [38] Q&A Session All Questions and Answers Question: Can you talk about the dollar's impact on revenue guidance? - The company experienced a headwind of about 1.5% from foreign exchange in Q1, but expects foreign exchange to be largely neutral for the remainder of the year [44][45] Question: Can you provide clarity on the operating environment and April's performance? - April was a decent month, with stable traffic for Dental distribution businesses and increased patient traffic for medical sales [47][50] Question: Are there any adjustments to your guidance inputs? - The sales guidance remains consistent, with most growth expected to be internally generated [55] Question: Can you comment on the tariff impacts? - The company is confident in mitigating the financial impact of tariffs through various strategies, including sourcing from lower tariff countries [56][58] Question: How is the dental capital equipment environment? - There has been healthy demand for equipment orders, with no significant adverse reactions noted [108] Question: What is the current sentiment among DSOs? - DSOs are stable to leaning positively, with many adjusting to higher interest rates and continuing to invest in expansion [115]