We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Plexus (PLXS) Q2 Earnings & Revenues Beat Estimates, Fall Y/Y
Read MoreHide Full Article
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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
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.