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Plexus Corp (PLXS) to Post Q1 Earnings: Key Factors to Note

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Plexus Corp (PLXS - Free Report) is slated to report first-quarter fiscal 2023 results on Jan 25.

The Zacks Consensus Estimate for first-quarter revenues is pegged at $1.11 billion, which suggests growth of 35.4% from the year-ago quarter’s reported figure. The consensus mark for earnings is pegged at $1.47 per share, indicating a year-over-year increase of 67.1%.

The company’s earnings beat the Zacks Consensus Estimate in three of the last four quarters. It has a trailing four-quarter earnings surprise of 17.5%, on average.

For first-quarter fiscal 2023, the company expects revenues to be between $1.08 billion and $1.13 billion. GAAP earnings are expected in the range of $1.40-$1.58 per share, including 20 cents of stock-based compensation expenses.

Plexus Corp. Price and EPS Surprise

Plexus Corp. Price and EPS Surprise

Plexus Corp. price-eps-surprise | Plexus Corp. Quote

Factors to Note

The company’s performance in the first quarter is likely to have benefited from the improving demand environment and new program ramps. In the last-reported quarter, the company won 32 manufacturing contracts in the fiscal fourth quarter, worth $214 million in annualized revenues. Also, trailing four-quarter manufacturing wins totaled more than $1 billion in annualized revenues.

The company is well-positioned to benefit from growing secular market trends in warehouse and factory automation, vehicle electrification, commercial space and robotic-assisted surgery.

The company expects Healthcare/Life Sciences sector customer wins to generate significant revenues in the first quarter owing to strong demand and new program ramps. Also, the funnel of qualified manufacturing is expected to benefit from customers re-evaluating their internal manufacturing strategies.

Additionally, Plexus is making considerable strides in its global energy-saving activities, lowering the relative electricity use at its production facilities by almost 10%.

However, the company’s performance is likely to be affected due to uncertainty prevailing over global macroeconomic conditions, geopolitical instability and supply-chain disruptions. Customer concentration risks and stiff competition are further concerns.

What Our Model Says

Our proven model does not predict an earnings beat for PLXS this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.

PLXS has an Earnings ESP of -0.68% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks With Favorable Combination

Here are some stocks you may consider, as our proven model shows that these have the right mix of elements to beat estimates this time around.

Halliburton Company (HAL - Free Report) has an Earnings ESP of +0.30% and currently carries a Zacks Rank #2. HAL is set to announce quarterly figures on Jan 24. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Halliburton’s to-be-reported quarter’s earnings and revenues is pegged at 67 cents per share and $5.58 billion, respectively. Shares of HAL have increased 45.9% in the past year.

SAP SE (SAP - Free Report) has an Earnings ESP of +3.09% and presently carries a Zacks Rank #2. SAP is slated to release quarterly numbers on Jan 26.

The Zacks Consensus Estimate for SAP’s to-be-reported quarter’s earnings and revenues is pegged at $1.38 per share and $8.23 billion, respectively. Shares of SAP have lost 14.8% in the past year.

American Airlines Group (AAL - Free Report) has an Earnings ESP of +16.71% and currently has a Zacks Rank #2. AAL is scheduled to report earnings on Jan 26.

The Zacks Consensus Estimate for AAL’s to-be-reported quarter’s earnings and revenues is pegged at 75 cents per share and $12.84 billion, respectively. Shares of AAL have lost 0.1% in the past year.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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