Plexus Corp (PLXS - Free Report) reported fourth-quarter fiscal 2023 adjusted earnings per share (EPS) of $1.44, which decreased 19.1% year over year. The Zacks Consensus Estimate was pegged at $1.26 per share.
Revenues of $1.02 billion decreased 8.9% year over year. The top-line performance was affected mainly from weakness in the Healthcare/Life Sciences and Industrial sectors. Revenues surpassed the Zacks Consensus Estimate by 0.4%.
In the reported quarter, revenues from Asia-Pacific declined 19.2%. Revenues from Europe, the Middle East and Africa and the Americas rose 27.1% and 2.4%, respectively.
In the fiscal fourth quarter, Plexus won 30 manufacturing contracts worth $192 million in annualized revenues when fully ramped into production. Trailing four-quarter manufacturing wins totaled more than $946 million in annualized revenues. Plexus also noted that a funnel of qualified manufacturing opportunities now amounted to $3.7 billion, down $307 million from the fiscal third quarter.
Market Sector Details
Industrial revenues were down 19.8% year over year to $417 million, contributing 41% to total revenues.
Healthcare/Life Sciences’ revenues declined 3.8% from the year-ago quarter’s levels to $449 million, contributing 44% to total revenues.
Revenues from Aerospace/Defense increased 15.3% year over year to $158 million, contributing 15% to total revenues.
The top 10 customers of the company accounted for 48% of net revenues for the fiscal fourth quarter.
Operating Details
Gross profit on a GAAP basis decreased 9.7% year over year to $96.7 million.
Gross margin contracted 10 basis points (bps) to 9.4%.
Selling and administrative expenses decreased 3.1% from the year-ago quarter to $43.4 million.
PLXS reported an adjusted operating income of $53.3 million, down 14.4% year over year. Adjusted operating margin contracted 30 bps to 5.2%.
Balance Sheet & Cash Flow
As of Sep 30, 2023, Plexus had cash & cash equivalents worth $256.2 million compared with $252.9 million as of Jul 1, 2023.
As of Sep 30, 2023, PLXS had long-term debt and finance lease obligations, net of the current portion of $190.8 million compared with $187.5 million as of Jul 1, 2023.
In the quarter under review, the cash flow from operations was $89.8 million. Plexus reported a free cash flow of $65.6 million.
PLXS repurchased shares worth $3.4 million at an average price of $98.91 per share in the fiscal fourth quarter. It has shares worth $5.7 million left under its existing $50 million share repurchase authorization.
Guidance
For first-quarter fiscal 2024, revenues are projected to be between $990 million and $1.03 billion.
GAAP operating margin is expected to be between 4.8% and 5.3%. GAAP diluted EPS is expected to be in the range of $1.15-$1.33.
Zacks Rank & Stocks to Consider
Plexus currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology space are Asure Software (ASUR - Free Report) , Synopsys (SNPS - Free Report) and Wix.com (WIX - Free Report) . Each stock presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Asure Software’s 2023 EPS has increased 5.9% in the past 60 days to 54 cents.
Asure Software’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 676.4%. Shares of ASUR have surged 55.9% in the past year.
The Zacks Consensus Estimate for Synopsys’ 2023 EPS has gained 2.5% in the past 60 days to $11.09. SNPS’ long-term earnings growth rate is 16.4%. Shares of SNPS have surged 62.7% in the past year.
The Zacks Consensus Estimate for Wix’s 2023 EPS has remained unchanged in the past 60 days to $3.35.
Wix’s earnings beat estimates in all the trailing four quarters, delivering an average surprise of 319.3%. Shares of WIX have rallied 5.3% in the past year.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
Plexus Corp (PLXS - Free Report) reported fourth-quarter fiscal 2023 adjusted earnings per share (EPS) of $1.44, which decreased 19.1% year over year. The Zacks Consensus Estimate was pegged at $1.26 per share.
Revenues of $1.02 billion decreased 8.9% year over year. The top-line performance was affected mainly from weakness in the Healthcare/Life Sciences and Industrial sectors. Revenues surpassed the Zacks Consensus Estimate by 0.4%.
In the reported quarter, revenues from Asia-Pacific declined 19.2%. Revenues from Europe, the Middle East and Africa and the Americas rose 27.1% and 2.4%, respectively.
In the fiscal fourth quarter, Plexus won 30 manufacturing contracts worth $192 million in annualized revenues when fully ramped into production. Trailing four-quarter manufacturing wins totaled more than $946 million in annualized revenues. Plexus also noted that a funnel of qualified manufacturing opportunities now amounted to $3.7 billion, down $307 million from the fiscal third quarter.
Market Sector Details
Industrial revenues were down 19.8% year over year to $417 million, contributing 41% to total revenues.
Healthcare/Life Sciences’ revenues declined 3.8% from the year-ago quarter’s levels to $449 million, contributing 44% to total revenues.
Revenues from Aerospace/Defense increased 15.3% year over year to $158 million, contributing 15% to total revenues.
The top 10 customers of the company accounted for 48% of net revenues for the fiscal fourth quarter.
Operating Details
Gross profit on a GAAP basis decreased 9.7% year over year to $96.7 million.
Gross margin contracted 10 basis points (bps) to 9.4%.
Selling and administrative expenses decreased 3.1% from the year-ago quarter to $43.4 million.
PLXS reported an adjusted operating income of $53.3 million, down 14.4% year over year. Adjusted operating margin contracted 30 bps to 5.2%.
Balance Sheet & Cash Flow
As of Sep 30, 2023, Plexus had cash & cash equivalents worth $256.2 million compared with $252.9 million as of Jul 1, 2023.
As of Sep 30, 2023, PLXS had long-term debt and finance lease obligations, net of the current portion of $190.8 million compared with $187.5 million as of Jul 1, 2023.
In the quarter under review, the cash flow from operations was $89.8 million. Plexus reported a free cash flow of $65.6 million.
PLXS repurchased shares worth $3.4 million at an average price of $98.91 per share in the fiscal fourth quarter. It has shares worth $5.7 million left under its existing $50 million share repurchase authorization.
Guidance
For first-quarter fiscal 2024, revenues are projected to be between $990 million and $1.03 billion.
GAAP operating margin is expected to be between 4.8% and 5.3%. GAAP diluted EPS is expected to be in the range of $1.15-$1.33.
Zacks Rank & Stocks to Consider
Plexus currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology space are Asure Software (ASUR - Free Report) , Synopsys (SNPS - Free Report) and Wix.com (WIX - Free Report) . Each stock presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Asure Software’s 2023 EPS has increased 5.9% in the past 60 days to 54 cents.
Asure Software’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 676.4%. Shares of ASUR have surged 55.9% in the past year.
The Zacks Consensus Estimate for Synopsys’ 2023 EPS has gained 2.5% in the past 60 days to $11.09. SNPS’ long-term earnings growth rate is 16.4%. Shares of SNPS have surged 62.7% in the past year.
The Zacks Consensus Estimate for Wix’s 2023 EPS has remained unchanged in the past 60 days to $3.35.
Wix’s earnings beat estimates in all the trailing four quarters, delivering an average surprise of 319.3%. Shares of WIX have rallied 5.3% in the past year.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
Get the latest research report on PLXS - FREE
Get the latest research report on SNPS - FREE
Get the latest research report on ASUR - FREE
Get the latest research report on WIX - FREE