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Plexus (PLXS) Q2 Earnings & Revenues Beat Estimates, Fall Y/Y
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Plexus Corp (PLXS - Free Report) reported second-quarter fiscal 2024 adjusted earnings per share (EPS) of 94 cents, which decreased 35.1% year over year. The Zacks Consensus Estimate was pegged at 87 cents per share.
Revenues of $967 million decreased 9.7% year over year. The top-line performance was affected mainly due to weakness in the Healthcare/Life Sciences and Industrial sectors. Revenues surpassed the Zacks Consensus Estimate by 1.6%.
In the reported quarter, revenues from the Asia-Pacific and America declined 11.2% and 21.1%, respectively. Revenues from Europe, the Middle East and Africa rose 51.9%.
In the fiscal second quarter, Plexus won 32 manufacturing contracts worth $255 million in annualized revenues when fully ramped into production. Plexus also noted that a funnel of qualified manufacturing opportunities now amounted to $3.5 billion, which decreased $459 million in the fiscal second quarter.
Market Sector Details
Industrial revenues were down 4.8% year over year to $418 million, contributing 43% to total revenues.
Healthcare/Life Sciences’ revenues declined 22.3% from the year-ago quarter’s levels to $379 million, contributing 39% to total revenues.
Revenues from Aerospace/Defense increased 18.1% year over year to $170 million, contributing 17% to total revenues.
The company’s top 10 customers accounted for 48% of net revenues in the fiscal second quarter.
Operating Details
Gross profit on a GAAP basis decreased 14.5% year over year to $88.1 million. Gross margin contracted 50 basis points (bps) to 9.1%.
Selling and administrative expenses increased 3.3% from the year-ago quarter to $47.6 million.
PLXS reported an adjusted operating income of $40.5 million, down 28.9% year over year. Adjusted operating margin contracted 110 bps to 4.2%. Balance Sheet & Cash Flow
As of Mar 30, 2024, Plexus had cash & cash equivalents worth $265.1 million compared with $231.9 million as of Dec 30, 2023.
As of Mar 30, 2024, PLXS had long-term debt and finance lease obligations, net of the current portion of $192 million compared with $192.1 million as of Dec 30, 2023.
In the quarter under review, the cash flow from operations was $87.8 million. Plexus reported a free cash outflow of $64.9 million.
PLXS repurchased shares worth $17.6 million in the fiscal second quarter. It has shares worth $38.1 million left under its existing $50 million share repurchase authorization.
Guidance
For third-quarter fiscal 2024, revenues are projected to be between $960 million and $1 billion.
GAAP operating margin is expected to be between 3.9% and 4.3%. GAAP EPS is expected to be in the range of 80-95 cents.
The Zacks Consensus Estimate for Badger Meter’s 2024 EPS has increased 9.9% in the past 60 days to $3.89. BMI’s long-term earnings growth rate is 12.3%.
Badger Meter’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, delivering an average surprise of 12.7%. BMI shares have risen 35.8% in the past year.
The Zacks Consensus Estimate for PINS’s 2024 EPS has increased 0.7% in the past 60 days to $1.34. PINS’s long-term earnings growth rate is 20.1%.
Pinterest’s earnings beat the Zacks Consensus Estimate in three of the last four quarters, delivering an average earnings surprise of 37.4%. Shares of PINS have gained 13% in the past year.
The Zacks Consensus Estimate for ANET’s 2024 EPS has increased 0.4% in the past 60 days to $7.49. ANET’s long-term earnings growth rate is 17.5%.
Arista Networks’ earnings beat the Zacks Consensus Estimate in each of the last four quarters, delivering an average earnings surprise of 13.3%. Shares of ANET have gained 62.7% in the past year.
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Plexus (PLXS) Q2 Earnings & Revenues Beat Estimates, Fall Y/Y
Plexus Corp (PLXS - Free Report) reported second-quarter fiscal 2024 adjusted earnings per share (EPS) of 94 cents, which decreased 35.1% year over year. The Zacks Consensus Estimate was pegged at 87 cents per share.
Revenues of $967 million decreased 9.7% year over year. The top-line performance was affected mainly due to weakness in the Healthcare/Life Sciences and Industrial sectors. Revenues surpassed the Zacks Consensus Estimate by 1.6%.
In the reported quarter, revenues from the Asia-Pacific and America declined 11.2% and 21.1%, respectively. Revenues from Europe, the Middle East and Africa rose 51.9%.
Plexus Corp. Price, Consensus and EPS Surprise
Plexus Corp. price-consensus-eps-surprise-chart | Plexus Corp. Quote
In the fiscal second quarter, Plexus won 32 manufacturing contracts worth $255 million in annualized revenues when fully ramped into production. Plexus also noted that a funnel of qualified manufacturing opportunities now amounted to $3.5 billion, which decreased $459 million in the fiscal second quarter.
Market Sector Details
Industrial revenues were down 4.8% year over year to $418 million, contributing 43% to total revenues.
Healthcare/Life Sciences’ revenues declined 22.3% from the year-ago quarter’s levels to $379 million, contributing 39% to total revenues.
Revenues from Aerospace/Defense increased 18.1% year over year to $170 million, contributing 17% to total revenues.
The company’s top 10 customers accounted for 48% of net revenues in the fiscal second quarter.
Operating Details
Gross profit on a GAAP basis decreased 14.5% year over year to $88.1 million. Gross margin contracted 50 basis points (bps) to 9.1%.
Selling and administrative expenses increased 3.3% from the year-ago quarter to $47.6 million.
PLXS reported an adjusted operating income of $40.5 million, down 28.9% year over year. Adjusted operating margin contracted 110 bps to 4.2%.
Balance Sheet & Cash Flow
As of Mar 30, 2024, Plexus had cash & cash equivalents worth $265.1 million compared with $231.9 million as of Dec 30, 2023.
As of Mar 30, 2024, PLXS had long-term debt and finance lease obligations, net of the current portion of $192 million compared with $192.1 million as of Dec 30, 2023.
In the quarter under review, the cash flow from operations was $87.8 million. Plexus reported a free cash outflow of $64.9 million.
PLXS repurchased shares worth $17.6 million in the fiscal second quarter. It has shares worth $38.1 million left under its existing $50 million share repurchase authorization.
Guidance
For third-quarter fiscal 2024, revenues are projected to be between $960 million and $1 billion.
GAAP operating margin is expected to be between 3.9% and 4.3%. GAAP EPS is expected to be in the range of 80-95 cents.
Zacks Rank & Stocks to Consider
Plexus currently has a Zacks Rank #4 (Sell).
Some better-ranked stocks from the broader technology space are Badger Meter (BMI - Free Report) , Pinterest (PINS - Free Report) and Arista Networks (ANET - Free Report) . Each stock presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Badger Meter’s 2024 EPS has increased 9.9% in the past 60 days to $3.89. BMI’s long-term earnings growth rate is 12.3%.
Badger Meter’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, delivering an average surprise of 12.7%. BMI shares have risen 35.8% in the past year.
The Zacks Consensus Estimate for PINS’s 2024 EPS has increased 0.7% in the past 60 days to $1.34. PINS’s long-term earnings growth rate is 20.1%.
Pinterest’s earnings beat the Zacks Consensus Estimate in three of the last four quarters, delivering an average earnings surprise of 37.4%. Shares of PINS have gained 13% in the past year.
The Zacks Consensus Estimate for ANET’s 2024 EPS has increased 0.4% in the past 60 days to $7.49. ANET’s long-term earnings growth rate is 17.5%.
Arista Networks’ earnings beat the Zacks Consensus Estimate in each of the last four quarters, delivering an average earnings surprise of 13.3%. Shares of ANET have gained 62.7% in the past year.