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Plexus (PLXS) to Report Q4 Earnings: What's in the Offing?

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

The Zacks Consensus Estimate for fiscal fourth-quarter revenues is pegged at $1.02 billion, which suggests a decline of 9.2% from the year-ago quarter’s reported figure. The consensus mark for earnings per share (EPS) is pegged at $1.26, indicating a year-over-year decrease of 29.2%.

The company’s earnings beat the Zacks Consensus Estimate in all the last four quarters. It has a trailing four-quarter earnings surprise of 20%, on average.

For fiscal fourth-quarter 2023, the company projects revenues between $1 billion and $1.04 billion. GAAP EPS is expected to be in the range of $1.18-$1.26.

Plexus Corp. Price and EPS Surprise

Plexus Corp. Price and EPS Surprise

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

Factors to Note

Plexus’s performance in the fiscal fourth quarter is likely to have benefited from new manufacturing contract wins. In the last reported quarter, the company won 30 manufacturing contracts worth $321 million in annualized revenues when fully ramped into production. Also, trailing four-quarter manufacturing wins totaled more than $968 million in annualized revenues.

The company anticipates its Aerospace and Defense segment to gain momentum owing to new program ramps and rising demand for its solutions in commercial aerospace amid weakness in the semiconductor capital equipment market. In the fiscal fourth quarter, the company expects a 10% rise in the Aerospace and Defense segment.

Also, the funnel of qualified manufacturing is expected to have benefited from customers outsourcing their internal manufacturing.

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

The company’s industrial segment is likely to have suffered owing to incremental weakness in semiconductor capital equipment and modest softening in some of its industrial markets. In the fiscal fourth quarter, the company expects a mid-single-digit decline in the industrial sector.

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. However, this is not the case here.

PLXS has an Earnings ESP of 0.00% and carries 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 that you may consider, as our proven model shows that these also have the right mix of elements to beat estimates this time around.

Cummins (CMI - Free Report) will release third-quarter 2023 results on Nov 2. The company has an Earnings ESP of +0.48% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Cummin’s to-be-reported quarter’s earnings and revenues is pegged at $4.70 per share and $8.19 billion, respectively. Shares of CMI have gained 1% in the past year.

Oshkosh Corporation (OSK - Free Report) will release third-quarter 2023 results on Oct 26. The company has an Earnings ESP of +8.24% and a Zacks Rank #3.

The Zacks Consensus Estimate for Oshkosh’s to-be-reported quarter’s earnings and revenues is pegged at $2.18 per share and $2.46 billion, respectively. Shares of OSK have gained 6.7% in the past year.

Pinterest (PINS - Free Report) has an Earnings ESP of +1.21% and a Zacks Rank #1. PINS is set to report its third-quarter 2023 results on Oct 30.

The Zacks Consensus Estimate for PINS’ to-be-reported quarter’s earnings and revenues is pegged at 21 cents per share and $742.3 million, respectively.  Pinterest shares have gained 18.1% in the past year.

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


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