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Plexus (PLXS) Q1 Earnings Miss Estimates, Revenues Grow Y/Y
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Plexus Corp (PLXS - Free Report) reported fiscal first-quarter 2018 results wherein both the top and the bottom line missed the Zacks Consensus Estimate.
Adjusted earnings of 75 cents per share missed the Zacks Consensus Estimate of 80 cents and declined 8.5% year over year.
Revenues of $677.3 million also fell behind the consensus mark of $684.7 million but on a year-over-year basis, it increased 6.7%.
Revenues from the Communications sector (20% of total revenue) grew 1.5% year over year to $133 million.
Healthcare/Life Sciences revenues (35%) were up 12.3% from the year-ago quarter to $233 million.
Industrial/Commercial revenues (30%) were up a mere 0.5% year over year to $133 million.
Defense/Security/Aerospace segment revenues (15%) grew 14.9% on a year-over-year basis to $100 million.
Region-wise, revenues from the Americas decreased 5.1% to $299 million. However, revenues from the Asia Pacific region increased 11.6% to $346 million on a year-over-year basis. Revenues from Europe, the Middle East and Africa, which totaled $64 million, also grew 64.1% year over year.
Plexus won 44 new manufacturing programs worth approximately $200 million in the quarter. It added over $794 million in revenues in the trailing four quarters from new wins.
Over the past year, its shares have increased 20.5% compared with the industry's gain of 16.5%.
Margins
Plexus reported adjusted operating income of $31.6 million in the quarter, down 6.9% year over year.
Adjusted operating margin contracted 60 basis points on a year-over-year basis to 4.7%.
Plexus exited the quarter with cash & cash equivalents worth $506.7 million compared with $568.9 million as of Sep 30, 2017. The company had long-term debt and capital lease obligations of about $26 million compared with $26.2 million as of Sep 30, 2017.
For the quarter, the company generated $69.1 million in cash flow from operations and used $16.7 million for capital expenditures. Free cash flow came in at about $52.4 million. Share repurchases for the quarter amounted to $9.5 million.
Outlook
For the second quarter of fiscal 2018, revenues are projected in the range of $670-$710 million. GAAP earnings are projected within 68 and 78 cents per share.
Operating margin is expected to be in the band of 4.3% to 4.7%.
Some better-ranked stocks in the broader technology sector include Micron Technology Inc. (MU - Free Report) , Broadcom Limited (AVGO - Free Report) and CACI International Inc. (CACI - Free Report) , each sporting a Zacks Rank #1.
Long-term earnings growth rate for Micron, Broadcom and CACI International is projected to be 10%, 13.8% and 10%, respectively.
Zacks Top 10 Stocks for 2018
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2018?
Last year's 2017 Zacks Top 10 Stocks portfolio produced double-digit winners, including FMC Corp. and VMware which racked up stellar gains of +67.9% and +61%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
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Plexus (PLXS) Q1 Earnings Miss Estimates, Revenues Grow Y/Y
Plexus Corp (PLXS - Free Report) reported fiscal first-quarter 2018 results wherein both the top and the bottom line missed the Zacks Consensus Estimate.
Adjusted earnings of 75 cents per share missed the Zacks Consensus Estimate of 80 cents and declined 8.5% year over year.
Revenues of $677.3 million also fell behind the consensus mark of $684.7 million but on a year-over-year basis, it increased 6.7%.
Revenues from the Communications sector (20% of total revenue) grew 1.5% year over year to $133 million.
Healthcare/Life Sciences revenues (35%) were up 12.3% from the year-ago quarter to $233 million.
Industrial/Commercial revenues (30%) were up a mere 0.5% year over year to $133 million.
Defense/Security/Aerospace segment revenues (15%) grew 14.9% on a year-over-year basis to $100 million.
Region-wise, revenues from the Americas decreased 5.1% to $299 million. However, revenues from the Asia Pacific region increased 11.6% to $346 million on a year-over-year basis. Revenues from Europe, the Middle East and Africa, which totaled $64 million, also grew 64.1% year over year.
Plexus won 44 new manufacturing programs worth approximately $200 million in the quarter. It added over $794 million in revenues in the trailing four quarters from new wins.
Over the past year, its shares have increased 20.5% compared with the industry's gain of 16.5%.
Margins
Plexus reported adjusted operating income of $31.6 million in the quarter, down 6.9% year over year.
Adjusted operating margin contracted 60 basis points on a year-over-year basis to 4.7%.
Plexus Corp. Price, Consensus and EPS Surprise
Plexus Corp. Price, Consensus and EPS Surprise | Plexus Corp. Quote
Balance Sheet & Cash Flow
Plexus exited the quarter with cash & cash equivalents worth $506.7 million compared with $568.9 million as of Sep 30, 2017. The company had long-term debt and capital lease obligations of about $26 million compared with $26.2 million as of Sep 30, 2017.
For the quarter, the company generated $69.1 million in cash flow from operations and used $16.7 million for capital expenditures. Free cash flow came in at about $52.4 million. Share repurchases for the quarter amounted to $9.5 million.
Outlook
For the second quarter of fiscal 2018, revenues are projected in the range of $670-$710 million. GAAP earnings are projected within 68 and 78 cents per share.
Operating margin is expected to be in the band of 4.3% to 4.7%.
Zacks Rank & Stocks to Consider
Plexus carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the broader technology sector include Micron Technology Inc. (MU - Free Report) , Broadcom Limited (AVGO - Free Report) and CACI International Inc. (CACI - Free Report) , each sporting a Zacks Rank #1.
Long-term earnings growth rate for Micron, Broadcom and CACI International is projected to be 10%, 13.8% and 10%, respectively.
Zacks Top 10 Stocks for 2018
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2018?
Last year's 2017 Zacks Top 10 Stocks portfolio produced double-digit winners, including FMC Corp. and VMware which racked up stellar gains of +67.9% and +61%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2018 today >>