Plexus Corp (PLXS - Free Report) reported first-quarter fiscal 2023 adjusted earnings of $1.49 per share, which surged 69.3% year over year. The Zacks Consensus Estimate was pegged at $1.47 per share.
Revenues of $1.094 billion increased 33.8% year over year. The top-line performance gained from continued momentum in secular growth markets amid weakness in semiconductor capital equipment market along with changes in new program ramp schedule and persistent supply-chain troubles. Revenues missed the Zacks Consensus Estimate by 1.1%
In the reported quarter, Asia-Pacific revenues rose 30.8%, while that from Europe and the Middle East and Africa, and the Americas increased 21.9% and 40.8%, respectively.
During the quarter, Plexus won 29 manufacturing contracts worth $158 million in annualized revenues when fully ramped into production. Trailing four-quarter manufacturing wins totaled more than $885 million in annualized revenues
Market Sector Details
Industrial’s revenues were up 29.7% year over year to $472 million, contributing 43% to total revenues.
Healthcare/Life Sciences segment’s revenues jumped 41.9% from the year-ago quarter’s levels to $488 million, contributing 45% to total revenues.
Revenues from Aerospace/Defense increased 22.9% year over year to $134 million, contributing 12% to total revenues.
The top 10 customers of the company accounted for 53% of net revenues for fiscal first quarter.
Operating Details
Gross profit on a GAAP basis increased 44.6% year over year to $101.2 million. The gross margin expanded 60 basis points (bps) to 9.3%.
Selling and administrative expenses (4% of revenues) increased 16.9% from the year-ago quarter to $43.9 million.
PLXS reported an adjusted operating income of $57.3 million, up 76.5% year over year. Adjusted operating margin expanded 120 bps to 5.2%.
Balance Sheet & Cash Flow
As of Dec 31, 2022, Plexus had cash & cash equivalents worth $247.9 million compared with $274.8 million as of Oct 1, 2022.
As of Dec 31, 2022, the company had long-term debt and finance lease obligations, net of the current portion of $187.3 million compared with $187.8 million as of Oct 1, 2022.
In the quarter under review, the cash flow used in operations was $48.8 million. The company reported a free cash outflow of $71.9 million.
The company repurchased shares worth $11.5 million at an average price of $99.12 per share in the fiscal first quarter. The company has shares worth $35 million left under its existing share repurchase authorization.
Guidance
For second-quarter fiscal 2023, revenues are projected between $1.02 billion and $1.07 billion.
GAAP operating margin is expected to be between 4.5% and 5%. GAAP earnings are expected in the range of $1.06-$1.24 per share, including 21 cents of stock-based compensation expenses.
Zacks Rank & Stocks to Consider
Plexus currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology space are Arista Networks (ANET - Free Report) , Jabil (JBL - Free Report) and Pure Storage (PSTG - Free Report) . While Jabil sports a Zacks Rank #1 (Strong Buy), Arista and Pure Storage carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Arista Networks’ 2022 earnings is pegged at $4.38 per share, up 1 cent in the past 60 days. The long-term earnings growth rate is anticipated to be 17.5%.
Arista Networks’ earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 12.7%. Shares of ANET are up 3.2% in the past year.
The Zacks Consensus Estimate for Jabil’s 2023 earnings is pegged at $8.37 per share, rising 2.3% in the past 60 days. The long-term earnings growth rate is anticipated to be 12%.
Jabil’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 8.8%. Shares of JBL have increased 35.9% in the past year.
The Zacks Consensus Estimate for Pure Storage’s fiscal 2023 earnings is pegged at $1.28 per share, up 8.5% in the past 60 days. The long-term earnings growth rate is anticipated to be 21.3%.
Pure Storage’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 156%. Shares of PSTG are up 10.6% in the past year.
Free Report: Must-See Energy Stocks for 2023
Record profits at oil companies can mean big gains for you. With soaring demand and elevated prices, oil stocks could be top performers by far in 2023. Zacks has released a special report revealing the 4 oil stocks experts believe will deliver the biggest gains. (You’ll never guess Stock #2!)
Download Oil Market on Fire today, absolutely free.
Plexus Corp (PLXS - Free Report) reported first-quarter fiscal 2023 adjusted earnings of $1.49 per share, which surged 69.3% year over year. The Zacks Consensus Estimate was pegged at $1.47 per share.
Revenues of $1.094 billion increased 33.8% year over year. The top-line performance gained from continued momentum in secular growth markets amid weakness in semiconductor capital equipment market along with changes in new program ramp schedule and persistent supply-chain troubles. Revenues missed the Zacks Consensus Estimate by 1.1%
In the reported quarter, Asia-Pacific revenues rose 30.8%, while that from Europe and the Middle East and Africa, and the Americas increased 21.9% and 40.8%, respectively.
During the quarter, Plexus won 29 manufacturing contracts worth $158 million in annualized revenues when fully ramped into production. Trailing four-quarter manufacturing wins totaled more than $885 million in annualized revenues
Market Sector Details
Industrial’s revenues were up 29.7% year over year to $472 million, contributing 43% to total revenues.
Healthcare/Life Sciences segment’s revenues jumped 41.9% from the year-ago quarter’s levels to $488 million, contributing 45% to total revenues.
Revenues from Aerospace/Defense increased 22.9% year over year to $134 million, contributing 12% to total revenues.
The top 10 customers of the company accounted for 53% of net revenues for fiscal first quarter.
Operating Details
Gross profit on a GAAP basis increased 44.6% year over year to $101.2 million. The gross margin expanded 60 basis points (bps) to 9.3%.
Selling and administrative expenses (4% of revenues) increased 16.9% from the year-ago quarter to $43.9 million.
PLXS reported an adjusted operating income of $57.3 million, up 76.5% year over year. Adjusted operating margin expanded 120 bps to 5.2%.
Balance Sheet & Cash Flow
As of Dec 31, 2022, Plexus had cash & cash equivalents worth $247.9 million compared with $274.8 million as of Oct 1, 2022.
As of Dec 31, 2022, the company had long-term debt and finance lease obligations, net of the current portion of $187.3 million compared with $187.8 million as of Oct 1, 2022.
In the quarter under review, the cash flow used in operations was $48.8 million. The company reported a free cash outflow of $71.9 million.
The company repurchased shares worth $11.5 million at an average price of $99.12 per share in the fiscal first quarter. The company has shares worth $35 million left under its existing share repurchase authorization.
Guidance
For second-quarter fiscal 2023, revenues are projected between $1.02 billion and $1.07 billion.
GAAP operating margin is expected to be between 4.5% and 5%. GAAP earnings are expected in the range of $1.06-$1.24 per share, including 21 cents of stock-based compensation expenses.
Zacks Rank & Stocks to Consider
Plexus currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology space are Arista Networks (ANET - Free Report) , Jabil (JBL - Free Report) and Pure Storage (PSTG - Free Report) . While Jabil sports a Zacks Rank #1 (Strong Buy), Arista and Pure Storage carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Arista Networks’ 2022 earnings is pegged at $4.38 per share, up 1 cent in the past 60 days. The long-term earnings growth rate is anticipated to be 17.5%.
Arista Networks’ earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 12.7%. Shares of ANET are up 3.2% in the past year.
The Zacks Consensus Estimate for Jabil’s 2023 earnings is pegged at $8.37 per share, rising 2.3% in the past 60 days. The long-term earnings growth rate is anticipated to be 12%.
Jabil’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 8.8%. Shares of JBL have increased 35.9% in the past year.
The Zacks Consensus Estimate for Pure Storage’s fiscal 2023 earnings is pegged at $1.28 per share, up 8.5% in the past 60 days. The long-term earnings growth rate is anticipated to be 21.3%.
Pure Storage’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 156%. Shares of PSTG are up 10.6% in the past year.
Free Report: Must-See Energy Stocks for 2023
Record profits at oil companies can mean big gains for you. With soaring demand and elevated prices, oil stocks could be top performers by far in 2023. Zacks has released a special report revealing the 4 oil stocks experts believe will deliver the biggest gains. (You’ll never guess Stock #2!)
Download Oil Market on Fire today, absolutely free.
Get the latest research report on PLXS - FREE
Get the latest research report on JBL - FREE
Get the latest research report on ANET - FREE
Get the latest research report on PSTG - FREE