A month has gone by since the last earnings report for Plexus (PLXS) . Shares have lost about 4.2% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is Plexus due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. Plexus Q3 Earnings Top Estimates Plexus reported third-quarte ...

Financial Data and Key Metrics - Non-GAAP operating margin for Q3 FY2024 was 5.8%, exceeding the guidance range of 5.2% to 5.6%, representing a nearly 90 basis point sequential increase [13] - Non-GAAP EPS for Q3 FY2024 was $1.45, exceeding the guidance range due to robust operating margin performance and lower interest expense [13] - Free cash flow for Q3 FY2024 was $114 million, the second highest quarterly performance in company history [45] - Revenue for Q3 FY2024 was $961 million, within the guidance range [123] - Gross margin for Q3 FY2024 was 9.8%, exceeding guidance and sequentially higher by 70 basis points [41] Business Line Performance - Industrial sector revenue decreased 4% sequentially in Q3 FY2024, below expectations of flat revenue, primarily due to customer design revisions and regulatory issues [18] - Healthcare life sciences sector revenue was flat sequentially in Q3 FY2024, meeting expectations, with a mid-single-digit sequential growth expected for Q4 FY2024 [24] - Aerospace and defense sector revenue increased 4% sequentially in Q3 FY2024, below expectations of a high single-digit increase, due to supply constraints and customer design changes [36] - Engineering solutions organization achieved the highest level of new business wins in the past four quarters, indicating positive leading indicators for overall business health [5] Market Performance - Americas region wins were exceptionally strong at $163 million in Q3 FY2024, including a new healthcare life sciences sector customer for the Chicago facility [30] - APAC region wins in Q3 FY2024 were $57 million, including a substantial semi cap program with an existing customer for the Penang, Malaysia campus [52] - EMEA region wins in Q3 FY2024 were $59 million, including a healthcare life sciences sector drug delivery device to be produced in the Oradea, Romania facility [53] Company Strategy and Industry Competition - The company expects 9% to 12% revenue growth for FY2025, with 5.5% GAAP and greater than 6% non-GAAP operating margin exiting FY2025 [12] - The company is focusing on environmental impact reductions, such as installing 1,600 solar panels at the Kelso, Scotland facility [14] - The company is committed to customer service excellence, as evidenced by awards from Honeywell Aerospace and Medtronic [4] Management Commentary on Business Environment and Future Outlook - Management expects sustained momentum into FY2025, with revenue benefits from share gains, new program wins, and healthy growth across market sectors [129] - The company anticipates continued strong demand in aerospace and defense, healthcare life sciences, and semiconductor capital equipment markets [16] - Management highlighted the importance of operational excellence and customer service excellence in driving market share gains and customer loyalty [89][90] Other Important Information - The company reduced borrowing by $89 million in Q3 FY2024 while continuing to support its share repurchase program, purchasing approximately 185,000 shares for $18.6 million [46] - The company expects capital spending in the range of $90 million to $110 million for FY2024, equating to less than 3% of revenue [50] - The company achieved an 8.4% energy intensity reduction across global manufacturing sites and launched two new employee resource groups [19] Q&A Session Summary Question: Gross Margin and SG&A Outlook - Gross margin is expected to remain in the high 9s (9.8% to 10%) due to manufacturing efficiencies and automation efforts [64] - SG&A is expected to be in the mid-4s to lower 4% range on a GAAP basis, with additional incentive compensation tied to revenue growth and return on invested capital [65] Question: Customer Tone and Demand Trends - Customer sentiment is incrementally positive, with strong demand in aerospace and defense, semi cap, and healthcare life sciences, while industrial markets show some weakness [72][73] Question: Operating Margin Drivers - Operating margin improvements are driven by gross margin gains, restructuring efficiencies, and automation efforts, with potential for further improvements [75] Question: Regional Profitability in Europe - Margins in Europe are improving, with additional wins expected to benefit profitability, particularly in Oradea and Livingston facilities [79] Question: Market Share Gains - Market share gains are driven by customer service excellence, operational excellence, and strong execution, with many wins coming from existing customers [89][90] Question: Healthcare Life Sciences Headwinds - The headwind from purchasing components at inflated prices is expected to normalize in FY2025, with minimal impact on revenue [102] Question: Power Generation and AI-Driven Opportunities - The company is seeing increased demand for power generation and AI-related infrastructure, with potential for growth in FY2025 [109] Question: Aerospace and Defense Funnel Composition - The aerospace and defense funnel is balanced between commercial and defense sectors, with robust demand for engineering solutions [110]

Plexus Corp (PLXS) reported third-quarter fiscal 2024 adjusted earnings per share (EPS) of $1.45, down 0.7% year over year. The figure outpaced the Zacks Consensus Estimate of $1.28 per share. In the reported quarter, revenues from the Asia-Pacific and America declined 8.7% and 10.5%, respectively. Revenues from Europe, the Middle East and Africa rose 30.5%. Market Sector Details Healthcare/Life Sciences' revenues declined 15.7% from the year-ago quarter's levels to $380 million, contributing 40% to total r ...

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. Revenue- Market Sector- Healthcare/Life Sciences: $380 million versus $379.01 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -15.7% change. Revenue- Market Sector- Aerospace ...

Company Performance - Plexus (PLXS) reported quarterly earnings of $1.45 per share, exceeding the Zacks Consensus Estimate of $1.28 per share, and up from $1.32 per share a year ago [1] - The company posted revenues of $960.75 million for the quarter, missing the Zacks Consensus Estimate by 1.95%, and down from $1.02 billion year-over-year [9] - Plexus has surpassed consensus EPS estimates three times over the last four quarters [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.30, reflecting a year-over-year decline of 16.1% [7] - The consensus EPS estimate for the current fiscal year is $5.15 on revenues of $3.96 billion [12] - The estimate revisions trend for Plexus is currently unfavorable, resulting in a Zacks Rank 5 (Strong Sell) for the stock [5] Industry Context - Plexus operates within the Electronics - Manufacturing Services industry, which is currently ranked in the bottom 22% of over 250 Zacks industries [6] - The industry outlook can significantly impact stock performance, with research indicating that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [6] Stock Performance - Plexus shares have increased approximately 9.9% since the beginning of the year, compared to a 16.5% gain for the S&P 500 [10] - The stock's immediate price movement will largely depend on management's commentary during the earnings call [3]

Plexus Announces Fiscal Third Quarter Financial Results • Reports fiscal third quarter 2024 revenue of $961 million, GAAP operating margin of 4.1% and GAAP diluted EPS of $0.91. • Initiates fiscal fourth quarter 2024 revenue guidance of $990 million to $1.03 billion with GAAP diluted EPS of $1.14 to $1.29, including $0.36 of stock-based compensation expense. Fiscal fourth quarter 2024 non-GAAP EPS guidance of $1.50 to $1.65 excludes stock-based compensation expense. | --- | --- | --- | --- | |-------------- ...

NEENAH, WI, July 24, 2024 (GLOBE NEWSWIRE) -- Plexus Corp. (NASDAQ: PLXS) today announced financial results for our fiscal third quarter ended June 29, 2024, and guidance for our fiscal fourth quarter ending September 28, 2024. | --- | --- | --- | --- | |-----------------------------------|-----------------------------------|----------------|----------------| | | Three Months Ended \nJun 29, 2024 | Jun 29, 2024 | Sep 28, 2024 | | | Q3F24 Results | Q3F24 Guidance | Q4F24 Guidance | | Summary GAAP Items | | | ...

Company Performance - The Zacks Consensus Estimate for Plexus Corp's fiscal third-quarter revenues is $979.9 million, indicating a decline of 4.1% from the previous year [1] - The company projects revenues for fiscal third-quarter 2024 to be between $960 million and $1 billion, with non-GAAP EPS expected in the range of $1.22 to $1.37 [2] Sector Analysis - Plexus is likely to benefit from strong demand in the aerospace and defense market, with expected sequential revenue growth in this sector by a high single digit percentage [3] - The Healthcare/Life Sciences sector is anticipated to have flat revenues due to near-term demand weakness and inventory corrections [4] - The Industrial sector is also expected to report flat revenues, impacted by inventory corrections that offset gains in semiconductor capital and broadband communications sectors [14] Market Conditions - The company faces headwinds from global macroeconomic uncertainty, geopolitical instability, and volatile supply-chain issues, along with customer concentration risks and stiff competition [5] Earnings Prediction - Current models do not predict an earnings beat for Plexus, as it has an Earnings ESP of 0.00% and a Zacks Rank of 5 (Strong Sell) [15]

What: Plexus Fiscal 2024 Q3 Earnings Conference Call and Webcast When: Thursday, July 25, 2024 at 8:30 a.m. Eastern Time NEENAH, WI, July 10, 2024 (GLOBE NEWSWIRE) -- Plexus Corp. (NASDAQ: PLXS) announced today it will release its fiscal third quarter 2024 results after market close on Wednesday, July 24, 2024. Plexus' management will host a conference call to discuss its fiscal third quarter results on Thursday, July 25, 2024 at 8:30 a.m. Eastern Time. An audio webcast of the call and accompanying slides w ...

NEENAH, WI, July 10, 2024 (GLOBE NEWSWIRE) -- Plexus Corp. (NASDAQ: PLXS) announced today it will release its fiscal third quarter 2024 results after market close on Wednesday, July 24, 2024. Plexus' management will host a conference call to discuss its fiscal third quarter results on Thursday, July 25, 2024 at 8:30 a.m. Eastern Time. An audio webcast of the call and accompanying slides will be available in the investor relations section of the company website, plexus.com. What: Plexus Fiscal 2024 Q3 Earnin ...