On July 30, Flex Ltd rose 5.48% in regular trading, trading at $109.035/share, with turnover of $197 million. The stock staged a recovery following the prior session's nearly 10% plunge, which was triggered by the company's announcement of a cloud and power infrastructure business spinoff plan along with a new leadership team.

The Electronic Manufacturing Services sector rallied broadly, with TTM Technologies up 15.03%, Sanmina up 9.15%, Celestica up 7.98%, and Fabrinet up 6.71%, providing a tailwind for the stock's technical rebound. On July 29, Flex had reported Q1 adjusted EPS of $1.00, beating the consensus estimate of $0.91 by nearly 10%, while revenue of $7.928 billion surpassed the $7.557 billion estimate. Full-year adjusted EPS guidance of $4.42-$4.74 also came in with its midpoint above consensus. However, the simultaneous disclosure of a spinoff plan for the cloud and power infrastructure business (Spinco) and related management changes sparked uncertainty, prompting a sharp sell-the-news reaction. Separately, Baird lowered its price target on Flex to $142 from $165 while maintaining an Outperform rating.

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