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Plexus' Q3 Earnings Surpass Estimates, Revenues Miss Marginally
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Key Takeaways
PLXS reported Q3 EPS of $1.90, beating estimates and its own guidance of $1.65-$1.80.
Quarterly revenues rose 6% YoY to $1.018B, slightly missing the $1.021B consensus estimate.
Plexus secured 41 new manufacturing wins, expected to add $250M in annualized revenues.
Plexus Corp. (PLXS - Free Report) reported third-quarter fiscal 2025 adjusted earnings per share (EPS) of $1.90 compared with the year-ago quarter’s earnings of $1.45. The figure beat the Zacks Consensus Estimate of $1.71 per share. Management expected non-GAAP EPS to be in the band of $1.65-$1.80.
Revenues of $1.018 billion were up nearly 6% year over year but missed the Zacks Consensus Estimate of $1.021 billion. Management expected revenues to be between $1 billion and $1.04 billion. PLXS witnessed increases in revenues across all market sectors.
In the reported quarter, revenues from the Americas increased 2% while EMEA sales declined 14.6%. Revenues from Asia-Pacific jumped 14% to $594 million.
In the fiscal third quarter, Plexus announced 41 manufacturing program wins, which are estimated to contribute $250 million in annualized revenues once fully ramped into production.
Industrial sector’s revenues were up 3% year over year to $415 million, driven by strength in broadband and energy that offset semicap push-outs. This segment contributed 41% to total revenues. PLXS expected the segment to register a low single-digit increase in revenues. Management anticipates current quarter revenues to gain from legacy broadband equipment orders and new program ramps.
Healthcare/Life Sciences’ revenues were up 10.5% from the year-ago quarter’s levels to $420 million. This contributed 41% to total revenues. For the fiscal third quarter, PLXS expected the Healthcare Life Sciences sector’s revenues to grow in mid-single digits. Management anticipates the current quarter to gain from ongoing program ramps.
Revenues from Aerospace/Defense inched up 2.8% year over year to $183 million. This contributed 18% to total revenues. Management guided revenue growth for the Aerospace and Defense sector to be up mid-single digits in the fiscal third quarter. For the fiscal fourth quarter, PLXS expects revenues to be flat, amid growth in the defense subsector.
Our estimates for revenues from the Industrial, Healthcare/Life Sciences and Aerospace/Defense were $412.3 million, $429 million and 180.9 million, respectively.
The company’s top 10 customers accounted for 48% of net revenues in the fiscal third quarter.
Plexus’ Operating Details
Gross profit on a GAAP basis increased 9.4% year over year to $103.3 million. Gross margin was 10.1%, up from 9.8% year over year.
Selling and administrative expenses increased 8.1% from the year-ago quarter’s actuals to $49.7 million.
Adjusted operating margin expanded 20 basis points to 6%.
PLXS’ Cash Flow & Balance Sheet Position
As of June 28, 2025, Plexus had cash & cash equivalents worth $237.6 million compared with $310.5 million as of March 29.
PLXS had long-term debt and finance lease obligations, net of the current portion of $92.2 million as of June 28, 2025, compared with $88.8 million as of March 29.
For the quarter under review, cash flows from operations were $26.9 million. Plexus reported a free cash flow of $13.2 million.
The company repurchased $18.4 million worth of shares at an average price of $128.70 per share under its repurchase program. Plexus added another $100 million to its existing, now fully-utilized, $50 million buyback authorization.
Plexus’ Q4 Outlook
For fourth-quarter fiscal 2025, revenues are anticipated to be between $1.025 billion and $1.065 billion.
Non-GAAP operating margin is expected to be between 5.7% and 6.1%. Non-GAAP EPS is expected to be in the band of $1.82-$1.97.
Recent Performance of Other Companies in Tech Space
BlackBerry Limited (BB - Free Report) reported first-quarter fiscal 2026 non-GAAP EPS of 2 cents. The figure surpassed the company’s estimate of a loss of 1 cent per share to breakeven. In the year-ago quarter, it reported a non-GAAP loss of 2 cents per share. The Zacks Consensus Estimate was pegged at breakeven. Quarterly total revenues of $121.7 million exceeded its guidance ($107-$115 million) but fell 1.4% year over year.
Over the past year, shares of BB have gained 70.8%.
Simulations Plus, Inc. (SLP - Free Report) reported third-quarter fiscal 2025 adjusted earnings of 45 cents per share, which expanded 66.7% year over year. The figure also beat the Zacks Consensus Estimate of 26 cents per share. Quarterly revenues jumped 10% year over year to $20.4 million, driven by continued momentum across its software and services business segments, along with a $2.4 million boost from the Pro-ficiency acquisition.
Over the past year, shares of SLP have declined 66.5%.
SAP SE (SAP - Free Report) reported second-quarter 2025 non-IFRS earnings of €1.50 ($1.70) per share, climbing 37% from the year-ago quarter’s levels. The Zacks Consensus Estimate was pegged at $1.63 per share. Driven by robust cloud growth, disciplined cost control and expanding AI capabilities, SAP reported total revenues of €9.03 billion ($10.24 billion) on a non-IFRS basis, representing a 9% year-over-year increase (up 12% at constant currency). The Zacks Consensus estimate was pegged at $10.37 billion.
Shares of SAP have surged 38.8% in the past year.
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Plexus' Q3 Earnings Surpass Estimates, Revenues Miss Marginally
Key Takeaways
Plexus Corp. (PLXS - Free Report) reported third-quarter fiscal 2025 adjusted earnings per share (EPS) of $1.90 compared with the year-ago quarter’s earnings of $1.45. The figure beat the Zacks Consensus Estimate of $1.71 per share. Management expected non-GAAP EPS to be in the band of $1.65-$1.80.
Revenues of $1.018 billion were up nearly 6% year over year but missed the Zacks Consensus Estimate of $1.021 billion. Management expected revenues to be between $1 billion and $1.04 billion. PLXS witnessed increases in revenues across all market sectors.
In the reported quarter, revenues from the Americas increased 2% while EMEA sales declined 14.6%. Revenues from Asia-Pacific jumped 14% to $594 million.
Plexus Corp. Price, Consensus and EPS Surprise
Plexus Corp. price-consensus-eps-surprise-chart | Plexus Corp. Quote
In the fiscal third quarter, Plexus announced 41 manufacturing program wins, which are estimated to contribute $250 million in annualized revenues once fully ramped into production.
In the past year, shares have gained 3.3% compared with the Electronic- Manufacturing Services industry’s growth of 102%.
Image Source: Zacks Investment Research
Looking at PLXS’ Market Sector Details
Industrial sector’s revenues were up 3% year over year to $415 million, driven by strength in broadband and energy that offset semicap push-outs. This segment contributed 41% to total revenues. PLXS expected the segment to register a low single-digit increase in revenues. Management anticipates current quarter revenues to gain from legacy broadband equipment orders and new program ramps.
Healthcare/Life Sciences’ revenues were up 10.5% from the year-ago quarter’s levels to $420 million. This contributed 41% to total revenues. For the fiscal third quarter, PLXS expected the Healthcare Life Sciences sector’s revenues to grow in mid-single digits. Management anticipates the current quarter to gain from ongoing program ramps.
Revenues from Aerospace/Defense inched up 2.8% year over year to $183 million. This contributed 18% to total revenues. Management guided revenue growth for the Aerospace and Defense sector to be up mid-single digits in the fiscal third quarter. For the fiscal fourth quarter, PLXS expects revenues to be flat, amid growth in the defense subsector.
Our estimates for revenues from the Industrial, Healthcare/Life Sciences and Aerospace/Defense were $412.3 million, $429 million and 180.9 million, respectively.
The company’s top 10 customers accounted for 48% of net revenues in the fiscal third quarter.
Plexus’ Operating Details
Gross profit on a GAAP basis increased 9.4% year over year to $103.3 million. Gross margin was 10.1%, up from 9.8% year over year.
Selling and administrative expenses increased 8.1% from the year-ago quarter’s actuals to $49.7 million.
Adjusted operating margin expanded 20 basis points to 6%.
PLXS’ Cash Flow & Balance Sheet Position
As of June 28, 2025, Plexus had cash & cash equivalents worth $237.6 million compared with $310.5 million as of March 29.
PLXS had long-term debt and finance lease obligations, net of the current portion of $92.2 million as of June 28, 2025, compared with $88.8 million as of March 29.
For the quarter under review, cash flows from operations were $26.9 million. Plexus reported a free cash flow of $13.2 million.
The company repurchased $18.4 million worth of shares at an average price of $128.70 per share under its repurchase program. Plexus added another $100 million to its existing, now fully-utilized, $50 million buyback authorization.
Plexus’ Q4 Outlook
For fourth-quarter fiscal 2025, revenues are anticipated to be between $1.025 billion and $1.065 billion.
Non-GAAP operating margin is expected to be between 5.7% and 6.1%. Non-GAAP EPS is expected to be in the band of $1.82-$1.97.
Zacks Rank of PLXS
Plexus currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Performance of Other Companies in Tech Space
BlackBerry Limited (BB - Free Report) reported first-quarter fiscal 2026 non-GAAP EPS of 2 cents. The figure surpassed the company’s estimate of a loss of 1 cent per share to breakeven. In the year-ago quarter, it reported a non-GAAP loss of 2 cents per share. The Zacks Consensus Estimate was pegged at breakeven. Quarterly total revenues of $121.7 million exceeded its guidance ($107-$115 million) but fell 1.4% year over year.
Over the past year, shares of BB have gained 70.8%.
Simulations Plus, Inc. (SLP - Free Report) reported third-quarter fiscal 2025 adjusted earnings of 45 cents per share, which expanded 66.7% year over year. The figure also beat the Zacks Consensus Estimate of 26 cents per share. Quarterly revenues jumped 10% year over year to $20.4 million, driven by continued momentum across its software and services business segments, along with a $2.4 million boost from the Pro-ficiency acquisition.
Over the past year, shares of SLP have declined 66.5%.
SAP SE (SAP - Free Report) reported second-quarter 2025 non-IFRS earnings of €1.50 ($1.70) per share, climbing 37% from the year-ago quarter’s levels. The Zacks Consensus Estimate was pegged at $1.63 per share. Driven by robust cloud growth, disciplined cost control and expanding AI capabilities, SAP reported total revenues of €9.03 billion ($10.24 billion) on a non-IFRS basis, representing a 9% year-over-year increase (up 12% at constant currency). The Zacks Consensus estimate was pegged at $10.37 billion.
Shares of SAP have surged 38.8% in the past year.