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Plexus (PLXS) Q1 Earnings Beat Estimates, Revenues Down Y/Y
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Plexus (PLXS - Free Report) reported first-quarter fiscal 2021 adjusted earnings of $1.23 per share that beat the Zacks Consensus Estimate by 10.8%. Moreover, the figure grew 23% year over year.
Revenues of $830.4 million beat the consensus mark by 0.02%. However, the figure decreased 2.6% year over year due to lower Americas and Europe, and the Middle East and Africa (EMEA) revenues, which fully offset steady performance in the Asia-Pacific (APAC).
APAC revenues were flat year over year at $451 million. However, EMEA revenues were $79 million, down 7.1%. Moreover, revenues in the Americas declined 7.4% to $327 million.
Plexus won 35 manufacturing contracts during the quarter, worth $223 million in annualized revenues. Trailing four-quarter manufacturing wins totaled $1 billion in annualized revenues.
Industrial revenues grew 2.7% year over year to $378 million and accounted for 45.5% of total revenues. Beginning first-quarter fiscal 2021, Plexus consolidated the previously reported Industrial/Commercial and Communications market sectors to form the Industrial market sector.
Healthcare/Life Sciences revenues climbed 2.2% from the year-ago quarter to $319 million. The sector accounted for 38.4% of total revenues.
However, Aerospace/Defense revenues decreased 22.7% year over year to $133 million and accounted for 16% of total revenues.
Notably, the top 10 customers of the company accounted for 55% of net revenues.
Operating Details
Gross profit on a GAAP basis increased 0.1% year over year to $79.3 million. Gross margin expanded 30 basis points (bps) year over year to 9.5%.
Selling and administrative expenses (3.9% of revenues) decreased 17.4% from the year-ago quarter to $32.4 million.
Plexus reported adjusted operating income of $46.9 million, up 17.4% year over year. Adjusted operating margin expanded 100 bps on a year-over-year basis to 5.6%
Balance Sheet & Cash Flow
As of Jan 2, 2021, Plexus had cash & cash equivalents worth $356.9 million compared with $385.8 million as of Oct 3, 2020.
Moreover, as of Jan 2, 2021, the company had long-term debt of $188.1 million compared with $188 million as of Oct 3, 2020.
In first-quarter fiscal 2021, cash flow provided by operations was $6.7 million. The company reported free cash outflow of $9.2 million.
ROIC (tax-effected annualized adjusted operating income divided by average invested capital over two quarters) was 16.3% for first-quarter fiscal 2021, which was much higher than Plexus’ weighted average cost of capital of 8.1%.
Guidance
For second-quarter fiscal 2021, revenues are projected between $860 million and $900 million. GAAP operating margin is expected between 5% and 5.5%.
GAAP earnings are expected between $1.17 and $1.32 per share.
The Zacks Consensus Estimate for first-quarter earnings is pegged at $1.02 per share, implying 67.2% growth from the figure reported in the year-ago quarter. The consensus mark for revenues stands at $831.2 million, suggesting growth of 8.3% from the year-ago quarter’s reported figure.
All the three stocks are scheduled to report their quarterly results on Jan 27.
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Plexus (PLXS) Q1 Earnings Beat Estimates, Revenues Down Y/Y
Plexus (PLXS - Free Report) reported first-quarter fiscal 2021 adjusted earnings of $1.23 per share that beat the Zacks Consensus Estimate by 10.8%. Moreover, the figure grew 23% year over year.
Revenues of $830.4 million beat the consensus mark by 0.02%. However, the figure decreased 2.6% year over year due to lower Americas and Europe, and the Middle East and Africa (EMEA) revenues, which fully offset steady performance in the Asia-Pacific (APAC).
APAC revenues were flat year over year at $451 million. However, EMEA revenues were $79 million, down 7.1%. Moreover, revenues in the Americas declined 7.4% to $327 million.
Plexus won 35 manufacturing contracts during the quarter, worth $223 million in annualized revenues. Trailing four-quarter manufacturing wins totaled $1 billion in annualized revenues.
Plexus Corp. Price, Consensus and EPS Surprise
Plexus Corp. price-consensus-eps-surprise-chart | Plexus Corp. Quote
Market Sector Details
Industrial revenues grew 2.7% year over year to $378 million and accounted for 45.5% of total revenues. Beginning first-quarter fiscal 2021, Plexus consolidated the previously reported Industrial/Commercial and Communications market sectors to form the Industrial market sector.
Healthcare/Life Sciences revenues climbed 2.2% from the year-ago quarter to $319 million. The sector accounted for 38.4% of total revenues.
However, Aerospace/Defense revenues decreased 22.7% year over year to $133 million and accounted for 16% of total revenues.
Notably, the top 10 customers of the company accounted for 55% of net revenues.
Operating Details
Gross profit on a GAAP basis increased 0.1% year over year to $79.3 million. Gross margin expanded 30 basis points (bps) year over year to 9.5%.
Selling and administrative expenses (3.9% of revenues) decreased 17.4% from the year-ago quarter to $32.4 million.
Plexus reported adjusted operating income of $46.9 million, up 17.4% year over year. Adjusted operating margin expanded 100 bps on a year-over-year basis to 5.6%
Balance Sheet & Cash Flow
As of Jan 2, 2021, Plexus had cash & cash equivalents worth $356.9 million compared with $385.8 million as of Oct 3, 2020.
Moreover, as of Jan 2, 2021, the company had long-term debt of $188.1 million compared with $188 million as of Oct 3, 2020.
In first-quarter fiscal 2021, cash flow provided by operations was $6.7 million. The company reported free cash outflow of $9.2 million.
ROIC (tax-effected annualized adjusted operating income divided by average invested capital over two quarters) was 16.3% for first-quarter fiscal 2021, which was much higher than Plexus’ weighted average cost of capital of 8.1%.
Guidance
For second-quarter fiscal 2021, revenues are projected between $860 million and $900 million. GAAP operating margin is expected between 5% and 5.5%.
GAAP earnings are expected between $1.17 and $1.32 per share.
The Zacks Consensus Estimate for first-quarter earnings is pegged at $1.02 per share, implying 67.2% growth from the figure reported in the year-ago quarter. The consensus mark for revenues stands at $831.2 million, suggesting growth of 8.3% 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 Apple (AAPL - Free Report) , Amphenol (APH - Free Report) and CACI International (CACI - Free Report) . All the three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
All the three stocks are scheduled to report their quarterly results on Jan 27.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>