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Plexus (PLXS) Q4 Earnings Beat Estimates, Revenues Up Y/Y
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Plexus (PLXS - Free Report) reported fourth-quarter fiscal 2020 adjusted earnings of $1.26 per share that beat the Zacks Consensus Estimate by 43.2%. Moreover, the figure grew 2.4% year over year.
Revenues of $913.2 million beat the consensus mark by 4.6%. The figure also increased 12.7% year over year due to a robust performance in Healthcare/Life Sciences and Industrial/Commercial sectors and higher Asia-Pacific (APAC) and Europe, the Middle East and Africa (EMEA) revenues.
APAC revenues increased 20.9% year over year to $503 million. Moreover, EMEA revenues were $99 million, up 22.2%. However, revenues in the Americas declined 2.9% to $334 million.
Plexus won 44 manufacturing contracts during the quarter, worth $286 million in annualized revenues. Trailing four-quarter manufacturing wins totaled $952 million in annualized revenues.
Market Sector Details
Industrial/Commercial revenues grew 29.2% year over year to $341 million and accounted for 37.3% of total revenues.
Healthcare/Life Sciences revenues climbed 10.9% from the year-ago quarter to $345 million. The sector accounted for 37.8% of total revenues.
However, Aerospace/Defense revenues decreased 19% year over year to $141 million and accounted for 15.4% of total revenues.
Communications accounted for 9.4% of total revenues. Revenues from the sector jumped 41% year over year to $86 million.
Notably, the top 10 customers of the company accounted for 56% of net revenues.
Operating Details
Gross profit on a GAAP basis increased 14.7% year over year to $89.2 million. Gross margin expanded 20 basis points (bps) year over year to 9.8%.
Selling and administrative expenses (4.3% of revenues) increased 0.6% from the year-ago quarter to $38.8 million.
Plexus reported adjusted operating income of $50.4 million, up 34.2% year over year. Adjusted operating margin expanded 90 bps on a year-over-year basis to 5.5%
Balance Sheet & Cash Flow
As of Oct 3, 2020, Plexus had cash & cash equivalents worth $385.8 million compared with $296.5 million as of Jul 4, 2020.
Moreover, as of Oct 3, 2020, the company had long-term debt of $188 million compared with $188.6 million as of Jul 4, 2020.
In fourth-quarter fiscal 2020, cash flow provided by operations was $117.8 million. The company reported free cash flow of $108.9 million.
ROIC (tax-effected annualized adjusted operating income divided by average invested capital over two quarters) was 14% for fourth-quarter fiscal 2020. Plexus’ weighted average cost of capital was 520 bps above WACC of 8.8%.
ROIC (tax-effected annualized adjusted operating income divided by average invested capital over a five-quarter period for the fiscal year) was 14% for fiscal 2020. Plexus’ weighted average cost of capital for fiscal 2020 was 8.8%.
Guidance
For first-quarter fiscal 2021, revenues are projected between $810 million and $850 million. COVID-19 is not expected to have any material impact on the operating strength of the company, beyond what had already occurred.
GAAP operating margin is expected between 4.9% and 5.3%.
GAAP earnings are expected between $1.02 and $1.17 per share.
The Zacks Consensus Estimate for first-quarter earnings is pegged at $1.02 per share, implying 2% growth from the figure reported in the year-ago quarter. The consensus mark for revenues stands at $845.7 million, suggesting a decline of 0.8% from the year-ago quarter’s reported figure.
Both CDW and Skyworks are scheduled to report their quarterly earnings on Nov 2. Qorvo is set to report on Nov 4.
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Plexus (PLXS) Q4 Earnings Beat Estimates, Revenues Up Y/Y
Plexus (PLXS - Free Report) reported fourth-quarter fiscal 2020 adjusted earnings of $1.26 per share that beat the Zacks Consensus Estimate by 43.2%. Moreover, the figure grew 2.4% year over year.
Revenues of $913.2 million beat the consensus mark by 4.6%. The figure also increased 12.7% year over year due to a robust performance in Healthcare/Life Sciences and Industrial/Commercial sectors and higher Asia-Pacific (APAC) and Europe, the Middle East and Africa (EMEA) revenues.
APAC revenues increased 20.9% year over year to $503 million. Moreover, EMEA revenues were $99 million, up 22.2%. However, revenues in the Americas declined 2.9% to $334 million.
Plexus won 44 manufacturing contracts during the quarter, worth $286 million in annualized revenues. Trailing four-quarter manufacturing wins totaled $952 million in annualized revenues.
Market Sector Details
Industrial/Commercial revenues grew 29.2% year over year to $341 million and accounted for 37.3% of total revenues.
Plexus Corp. Price, Consensus and EPS Surprise
Plexus Corp. price-consensus-eps-surprise-chart | Plexus Corp. Quote
Healthcare/Life Sciences revenues climbed 10.9% from the year-ago quarter to $345 million. The sector accounted for 37.8% of total revenues.
However, Aerospace/Defense revenues decreased 19% year over year to $141 million and accounted for 15.4% of total revenues.
Communications accounted for 9.4% of total revenues. Revenues from the sector jumped 41% year over year to $86 million.
Notably, the top 10 customers of the company accounted for 56% of net revenues.
Operating Details
Gross profit on a GAAP basis increased 14.7% year over year to $89.2 million. Gross margin expanded 20 basis points (bps) year over year to 9.8%.
Selling and administrative expenses (4.3% of revenues) increased 0.6% from the year-ago quarter to $38.8 million.
Plexus reported adjusted operating income of $50.4 million, up 34.2% year over year. Adjusted operating margin expanded 90 bps on a year-over-year basis to 5.5%
Balance Sheet & Cash Flow
As of Oct 3, 2020, Plexus had cash & cash equivalents worth $385.8 million compared with $296.5 million as of Jul 4, 2020.
Moreover, as of Oct 3, 2020, the company had long-term debt of $188 million compared with $188.6 million as of Jul 4, 2020.
In fourth-quarter fiscal 2020, cash flow provided by operations was $117.8 million. The company reported free cash flow of $108.9 million.
ROIC (tax-effected annualized adjusted operating income divided by average invested capital over two quarters) was 14% for fourth-quarter fiscal 2020. Plexus’ weighted average cost of capital was 520 bps above WACC of 8.8%.
ROIC (tax-effected annualized adjusted operating income divided by average invested capital over a five-quarter period for the fiscal year) was 14% for fiscal 2020. Plexus’ weighted average cost of capital for fiscal 2020 was 8.8%.
Guidance
For first-quarter fiscal 2021, revenues are projected between $810 million and $850 million. COVID-19 is not expected to have any material impact on the operating strength of the company, beyond what had already occurred.
GAAP operating margin is expected between 4.9% and 5.3%.
GAAP earnings are expected between $1.02 and $1.17 per share.
The Zacks Consensus Estimate for first-quarter earnings is pegged at $1.02 per share, implying 2% growth from the figure reported in the year-ago quarter. The consensus mark for revenues stands at $845.7 million, suggesting a decline of 0.8% from the year-ago quarter’s reported figure.
Zacks Rank & Stocks to Consider
Plexus currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector are CDW Corporation (CDW - Free Report) , Qorvo (QRVO - Free Report) and Skyworks Solutions (SWKS - Free Report) . CDW and Qorvo both sport a Zacks Rank #1 (Strong Buy), while Skyworks carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Both CDW and Skyworks are scheduled to report their quarterly earnings on Nov 2. Qorvo is set to report on Nov 4.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot stocks we're targeting >>