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Plexus (PLXS) Q4 Earnings Beat Estimates, Revenues Up Y/Y
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Plexus (PLXS - Free Report) reported fourth-quarter fiscal 2019 adjusted earnings of 93 cents per share that beat the Zacks Consensus Estimate by seven cents but decreased 3.1% year over year.
Revenues of $810 million beat the consensus mark of $778 million and increased 5.1% year over year. Strong revenues from Aerospace/Defense, Industrial/Commercial and Healthcare/Life Sciences sectors drove the top line.
Americas (AMER) revenues increased 7.5% year over year to $344 million. Europe, the Middle East and Africa (EMEA) revenues totaled $81 million, up 17.4% year over year. However, Asia-Pacific (APAC) revenues declined 0.5% to $416 million.
Plexus won 35 manufacturing contracts during the quarter, worth $202 million in annualized revenues. Trailing four-quarter manufacturing wins totaled $907 million in annualized revenues.
Healthcare/Life Sciences revenues rose 7.6% from the year-ago quarter to $311 million. The sector accounted for 38.4% of total revenues.
Industrial/Commercial revenues grew 8.2% year over year to $264 million and accounted for 32.6% of total revenues.
Aerospace/Defense revenues jumped 45% to $174 million and accounted for 21.5% of total revenues.
Communications accounted for 7.5% of total revenues. Revenues from the sector decreased 48.3% year over year to $61 million.
Notably, the top 10 customers of the company accounted for 51% of net revenues.
Operating Details
Gross profit increased 6.1% year over year to $77.8 million. Moreover, gross margin expanded 10 basis points (bps) year over year to 9.6%.
Selling and administrative expenses (4.8% of revenues) increased 6.2% from the year-ago quarter to approximately $38.6 million.
Plexus reported adjusted operating income of $39.2 million, up 6.1% year over year. However, adjusted operating margin was flat on a year-over-year basis at 4.8%.
Balance Sheet & Cash Flow
As of Sep 28, 2019, Plexus had cash & cash equivalents worth $226.3 million compared with $198.4 million as of Jun 30, 2019.
Moreover, as of Sep 28, 2019, the company had a long-term debt of $187.3 million compared with $187.6 million as of Jun 30, 2019.
In fourth-quarter fiscal 2019, Plexus generated a free cash flow of $92 million.
Further, the company repurchased shares worth $31.4 million at an average price of $58.38 per share.
ROIC (tax-effected annualized adjusted operating income divided by average invested capital over five quarters) was 13.1% for both the fourth quarter and fiscal 2019. Plexus’ weighted average cost of capital for fiscal 2019 was 9%.
Guidance
For first-quarter fiscal 2020, revenues are projected between $780 million and $820 million. The Zacks Consensus Estimate is currently pegged at $787 million, indicating 2.8% growth from the figure reported in the year-ago quarter.
Additionally, Plexus expects GAAP earnings between 87 cents and 97 cents per share. The consensus mark for earnings is currently pegged at 87 cents, suggesting a decline of 4.4% from the figure reported in the year-ago quarter.
Akamai, Cirrus Logic and Alteryx are set to report quarterly results on Oct 28, 30 and 31, respectively.
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Plexus (PLXS) Q4 Earnings Beat Estimates, Revenues Up Y/Y
Plexus (PLXS - Free Report) reported fourth-quarter fiscal 2019 adjusted earnings of 93 cents per share that beat the Zacks Consensus Estimate by seven cents but decreased 3.1% year over year.
Revenues of $810 million beat the consensus mark of $778 million and increased 5.1% year over year. Strong revenues from Aerospace/Defense, Industrial/Commercial and Healthcare/Life Sciences sectors drove the top line.
Americas (AMER) revenues increased 7.5% year over year to $344 million. Europe, the Middle East and Africa (EMEA) revenues totaled $81 million, up 17.4% year over year. However, Asia-Pacific (APAC) revenues declined 0.5% to $416 million.
Plexus won 35 manufacturing contracts during the quarter, worth $202 million in annualized revenues. Trailing four-quarter manufacturing wins totaled $907 million in annualized revenues.
Plexus Corp. Price, Consensus and EPS Surprise
Plexus Corp. price-consensus-eps-surprise-chart | Plexus Corp. Quote
Market Sector Details
Healthcare/Life Sciences revenues rose 7.6% from the year-ago quarter to $311 million. The sector accounted for 38.4% of total revenues.
Industrial/Commercial revenues grew 8.2% year over year to $264 million and accounted for 32.6% of total revenues.
Aerospace/Defense revenues jumped 45% to $174 million and accounted for 21.5% of total revenues.
Communications accounted for 7.5% of total revenues. Revenues from the sector decreased 48.3% year over year to $61 million.
Notably, the top 10 customers of the company accounted for 51% of net revenues.
Operating Details
Gross profit increased 6.1% year over year to $77.8 million. Moreover, gross margin expanded 10 basis points (bps) year over year to 9.6%.
Selling and administrative expenses (4.8% of revenues) increased 6.2% from the year-ago quarter to approximately $38.6 million.
Plexus reported adjusted operating income of $39.2 million, up 6.1% year over year. However, adjusted operating margin was flat on a year-over-year basis at 4.8%.
Balance Sheet & Cash Flow
As of Sep 28, 2019, Plexus had cash & cash equivalents worth $226.3 million compared with $198.4 million as of Jun 30, 2019.
Moreover, as of Sep 28, 2019, the company had a long-term debt of $187.3 million compared with $187.6 million as of Jun 30, 2019.
In fourth-quarter fiscal 2019, Plexus generated a free cash flow of $92 million.
Further, the company repurchased shares worth $31.4 million at an average price of $58.38 per share.
ROIC (tax-effected annualized adjusted operating income divided by average invested capital over five quarters) was 13.1% for both the fourth quarter and fiscal 2019. Plexus’ weighted average cost of capital for fiscal 2019 was 9%.
Guidance
For first-quarter fiscal 2020, revenues are projected between $780 million and $820 million. The Zacks Consensus Estimate is currently pegged at $787 million, indicating 2.8% growth from the figure reported in the year-ago quarter.
Additionally, Plexus expects GAAP earnings between 87 cents and 97 cents per share. The consensus mark for earnings is currently pegged at 87 cents, suggesting a decline of 4.4% from the figure reported in the year-ago quarter.
Zacks Rank & Stocks to Consider
Plexus currently carries a Zacks Rank #3 (Hold).
Akamai Technologies (AKAM - Free Report) , Alteryx and Cirrus Logic (CRUS - Free Report) are some better-ranked stocks in the broader computer and technology sector. All three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Akamai, Cirrus Logic and Alteryx are set to report quarterly results on Oct 28, 30 and 31, respectively.
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This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
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