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Plexus Gearing Up to Report Q4 Earnings: Whats in the Cards?

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Plexus Corp (PLXS - Free Report) is slated to report fiscal fourth-quarter 2024 earnings on Oct 23, after the closing bell. 

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar..

The Zacks Consensus Estimate for fiscal fourth-quarter revenues is pegged at $1.01 billion, suggesting a decline of 1.8% from the year-ago quarter’s reported figure. The consensus mark for earnings per share (EPS) is pegged at $1.53, indicating a 6.3% year-over-year increase.

The company’s earnings beat the Zacks Consensus Estimate in three of the last four quarters while missing once. It has a trailing four-quarter earnings surprise of 8.6%, on average.

For fourth-quarter fiscal 2024, the company projects revenues between $990 billion and $1.03 billion. Non-GAAP EPS is expected to be in the range of $1.50-$1.65.

Factors to Play for PLXS

Plexus’s performance in the fiscal fourth quarter is likely to have benefited from new manufacturing program wins. In the last reported quarter, the company won 35 manufacturing contracts worth $279 million in annualized revenues when fully ramped into production. The company expects this positive demand trend to be a key catalyst in the quarter’s performance.

Momentum in the Aerospace/Defense owing to new program ramps driven by increasing demand for its engineering solutions in commercial aerospace and defense market sectors bodes well. Although PLXS expects revenues to be flat sequentially in the fourth quarter, fiscal 2024 revenues are projected to surpass the high-teens growth and fiscal 2023 revenues.

PLXS expects revenues for its Healthcare/Life Sciences sector to grow mid-single digits in the fiscal fourth quarter, driven by multiple new deal wins from existing clients coupled with rising demand for its engineering solutions. Management projects the Industrial sector to report high single-digit revenue growth for the fiscal fourth quarter due to continued deal wins within semi-cap, test and measurement, and broadband communications.

Plexus Corp. Price and EPS Surprise

Uncertainty prevailing over global macroeconomic conditions, geopolitical headwinds, customer concentration risks, stiff rivalry and supply-chain challenges remain woes. 

Supply issues on commercial aerospace program-specific components and customer design changes are likely to have affected the aerospace/defense sector’s performance in the fiscal fourth quarter. The company expects the 2024 industrial sector and revenues to decline by a low single digit. Also, in fiscal 2024, it expects Healthcare/Life Sciences sector revenues to fall in the mid-teens.

What Does Our Model Say for PLXS

Our proven model does not conclusively predict an earnings beat for Plexus 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.

Earnings ESP: Plexus has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter..

Zacks Rank: Plexus currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Here are some stocks you may consider, as our model shows that these have the right combination of elements to beat on earnings this season.

TransUnion (TRU - Free Report) currently has an Earnings ESP of +1.84% and a Zacks Rank #1. It is scheduled to release results for the third quarter of 2024 on Oct. 23. The Zacks Consensus Estimate for TRU’s to-be-reported quarter’s earnings and revenues is pegged at $1.02 per share and $1.06 billion, respectively. Shares of TRU have gained 66.3% in the past year.

Seagate Technology (STX - Free Report) has an Earnings ESP of +5.09% and a Zacks Rank #3 at present. It is scheduled to release first-quarter fiscal 2025 results on Oct. 22. The Zacks Consensus Estimate for STX’s to-be-reported quarter’s earnings and revenues is pegged at $1.48 per share and $2.12 billion, respectively. Shares of STX have gained 71.8% in the past year.  

Verizon Communications (VZ - Free Report) has an Earnings ESP of +0.22% and a Zacks Rank #3 at present. It is scheduled to release third-quarter 2024 results on Oct. 22. The Zacks Consensus Estimate for VZ’s to-be-reported quarter’s earnings and revenues is pegged at $1.18 per share and $33.53 billion, respectively. Shares of VZ have gained 40.1% in the past year.

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