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Plexus (PLXS) Q2 Earnings Miss Estimates, Revenues Beat
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Plexus Corp (PLXS - Free Report) reported fiscal second-quarter 2018 adjusted earnings of 74 cents per share, which missed the Zacks Consensus Estimate by a penny and declined 11.9% year over year.
Revenues of $698.7 million however surpassed the consensus mark of $690.8 million and increased 15.6% on a year-over-year basis.
Healthcare/Life Sciences revenues (35%) were up nearly 21% from the year-ago quarter to $248 million.
Industrial/Commercial revenues (35%) were up 26% year over year to $242 million.
Defense/Security/Aerospace segment revenues (16%) grew 11% on a year-over-year basis to $110 million.
Revenues from the Communications sector (14% of total revenue) however fell 8.3% year over year to $99 million.
Region-wise, revenues from the Americas increased 11% from the year-ago quarter to $302 million. Revenues from the Asia Pacific region rose 12.9% to $350 million on a year-over-year basis. Revenues from Europe, the Middle East and Africa, which totaled $74 million, grew 68.2% year over year.
Plexus won 41 new manufacturing programs worth approximately $255 million (highest quarterly win) in the quarter. It added over $847 million in revenues in the trailing four quarters from new wins.
The 10 customers of the company together accounted for about 58% of net revenues in the quarter.
Plexus reported adjusted operating income of $30.8 million for the quarter, down 5.5% year over year.
Adjusted operating margin contracted 100 basis points on a year-over-year basis to 4.4%.
Balance Sheet & Cash Flow
Plexus exited the quarter with cash & cash equivalents worth $402.5 million compared with $506.7 million as of Dec 30, 2017. The company had long-term debt and capital lease obligations of about $27.2 million compared with $26.2 million as of Dec 30, 2017.
For the quarter, the company used $66.3 million of cash flow in operations and $12.4 million for capital expenditures, resulting in free cash outflow of $78.7 million. Share repurchases for the quarter amounted to $31.6 million.
Outlook
For the third quarter of fiscal 2018, revenues are projected in the range of $700-$740 million. GAAP earnings are projected within 76 and 86 cents per share.
Operating margin is expected to be in the band of 4.6% to 5%.
The company expects to achieve 12% revenue growth in fiscal 2018 on the back of new programs wins and improving end markets.
Long-term earnings growth rate for Lam Research, Micron and Western Digital is projected to be 17.7%, 10% and 19%, respectively.
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Plexus (PLXS) Q2 Earnings Miss Estimates, Revenues Beat
Plexus Corp (PLXS - Free Report) reported fiscal second-quarter 2018 adjusted earnings of 74 cents per share, which missed the Zacks Consensus Estimate by a penny and declined 11.9% year over year.
Revenues of $698.7 million however surpassed the consensus mark of $690.8 million and increased 15.6% on a year-over-year basis.
Healthcare/Life Sciences revenues (35%) were up nearly 21% from the year-ago quarter to $248 million.
Industrial/Commercial revenues (35%) were up 26% year over year to $242 million.
Defense/Security/Aerospace segment revenues (16%) grew 11% on a year-over-year basis to $110 million.
Revenues from the Communications sector (14% of total revenue) however fell 8.3% year over year to $99 million.
Region-wise, revenues from the Americas increased 11% from the year-ago quarter to $302 million. Revenues from the Asia Pacific region rose 12.9% to $350 million on a year-over-year basis. Revenues from Europe, the Middle East and Africa, which totaled $74 million, grew 68.2% year over year.
Plexus won 41 new manufacturing programs worth approximately $255 million (highest quarterly win) in the quarter. It added over $847 million in revenues in the trailing four quarters from new wins.
The 10 customers of the company together accounted for about 58% of net revenues in the quarter.
Plexus Corp. Price, Consensus and EPS Surprise
Plexus Corp. Price, Consensus and EPS Surprise | Plexus Corp. Quote
Margins
Plexus reported adjusted operating income of $30.8 million for the quarter, down 5.5% year over year.
Adjusted operating margin contracted 100 basis points on a year-over-year basis to 4.4%.
Balance Sheet & Cash Flow
Plexus exited the quarter with cash & cash equivalents worth $402.5 million compared with $506.7 million as of Dec 30, 2017. The company had long-term debt and capital lease obligations of about $27.2 million compared with $26.2 million as of Dec 30, 2017.
For the quarter, the company used $66.3 million of cash flow in operations and $12.4 million for capital expenditures, resulting in free cash outflow of $78.7 million. Share repurchases for the quarter amounted to $31.6 million.
Outlook
For the third quarter of fiscal 2018, revenues are projected in the range of $700-$740 million. GAAP earnings are projected within 76 and 86 cents per share.
Operating margin is expected to be in the band of 4.6% to 5%.
The company expects to achieve 12% revenue growth in fiscal 2018 on the back of new programs wins and improving end markets.
Zacks Rank & Other Stocks to Consider
Plexus carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader technology sector include Lam Research Corporation (LRCX - Free Report) , Micron Technology (MU - Free Report) and Western Digital (WDC - Free Report) , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
Long-term earnings growth rate for Lam Research, Micron and Western Digital is projected to be 17.7%, 10% and 19%, respectively.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>