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Plexus (PLXS) Q1 Earnings Top Estimates, Revenues Surge Y/Y
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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
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.
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.
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Plexus (PLXS) Q1 Earnings Top Estimates, Revenues Surge Y/Y
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
Plexus Corp. Price, Consensus and EPS Surprise
Plexus Corp. price-consensus-eps-surprise-chart | Plexus Corp. Quote
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.