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Unlocking Plexus (PLXS) International Revenues: Trends, Surprises, and Prospects

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Have you evaluated the performance of Plexus' (PLXS - Free Report) international operations for the quarter ending March 2024? Given the extensive global presence of this electronic manufacturing services company, analyzing the patterns in international revenues is crucial for understanding its financial strength and potential for growth.

In the modern, closely-knit global economic landscape, the capacity of a business to access foreign markets is often a key determinant of its financial well-being and growth path. Investors now place great importance on grasping the extent of a company's dependence on international markets, as it sheds light on the firm's earnings stability, its skill in leveraging various economic cycles and its broad growth potential.

Being present in international markets serves as a counterbalance to domestic economic challenges while offering chances to engage with more rapidly evolving economies. However, this kind of diversification introduces challenges like currency fluctuations, geopolitical uncertainties and varying market trends.

Upon examining PLXS' recent quarterly performance, we noticed several interesting patterns in the revenue generated from its international segments, which are commonly analyzed and observed by Wall Street experts.

For the quarter, the company's total revenue amounted to $966.9 million, experiencing a decline of 9.7% year over year. Next, we'll explore the breakdown of PLXS' international revenue to understand the importance of its overseas business operations.

Unveiling Trends in PLXS' International Revenues

During the quarter, Asia-Pacific contributed $521 million in revenue, making up 53.9% of the total revenue. When compared to the consensus estimate of $526.18 million, this meant a surprise of -0.98%. Looking back, Asia-Pacific contributed $552 million, or 56.2%, in the previous quarter, and $587 million, or 54.8%, in the same quarter of the previous year.

Of the total revenue, $155 million came from Europe, Middle East and Africa during the last fiscal quarter, accounting for 16.0%. This represented a surprise of +52.8% as analysts had expected the region to contribute $101.44 million to the total revenue. In comparison, the region contributed $122 million, or 12.4%, and $102 million, or 9.5%, to total revenue in the previous and year-ago quarters, respectively.

International Market Revenue Projections

For the current fiscal quarter, it is anticipated by Wall Street analysts that Plexus will report a total revenue of $989.8 million, which reflects a decline of 3.1% from the same quarter in the previous year. The revenue contributions are expected to be 56.6% from Asia-Pacific ($560.12 million) and 11.2% from Europe, Middle East and Africa ($110.68 million).

Analysts expect the company to report a total annual revenue of $4.04 billion for the full year, marking a decrease of 4.1% compared to last year. The expected revenue contributions from Asia-Pacific and Europe, Middle East and Africa are projected to be 55.7% ($2.25 billion) and 11.3% ($456.86 million) of the total revenue, in that order.

Wrapping Up

Relying on international markets for revenues, Plexus faces both prospects and perils. Thus, tracking the company's international revenue trends is essential for accurately projecting its future trajectory.

With the increasing intricacies of global interdependence and geopolitical strife, Wall Street analysts meticulously observe these patterns, especially for companies with an international footprint, to tweak their forecasts of earnings. Importantly, several additional factors, such as a company's domestic market status, also impact these earnings forecasts.

At Zacks, we place significant importance on a company's evolving earnings outlook. This is based on empirical evidence demonstrating its strong influence on a stock's short -term price movements. Invariably, there exists a positive relationship -- an upward revision in earnings estimates is typically mirrored by a rise in the stock price.

Our proprietary stock rating tool, the Zacks Rank, with its externally validated exceptional track record, harnesses the power of earnings estimate revisions to serve as a dependable measure for anticipating the short-term price trends of stocks.

Currently, Plexus holds a Zacks Rank #4 (Sell), signifying its potential to underperform the overall market's performance in the forthcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Assessing Plexus' Stock Price Movement in Recent Times

Over the past month, the stock has seen an increase of 5.8% in its value, whereas the Zacks S&P 500 composite has posted a decrease of 2%. The Zacks Computer and Technology sector, Plexus' industry group, has descended 1.9% over the identical span. In the past three months, there's been an increase of 2.8% in the company's stock price, against a rise of 4.6% in the S&P 500 index. The broader sector has increased by 4.2% during this interval.

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