Plexus Corp (PLXS Quick QuotePLXS - Free Report) 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.

Revenues of $961 million decreased 6% year over year. The top-line contraction was due to poor performance in the Healthcare/Life Sciences and Industrial sectors. Revenues missed the Zacks Consensus Estimate by 1.95%.

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%.

During the fiscal third quarter, Plexus won 35 manufacturing programs, which are estimated to contribute $279 million in annualized revenues once fully ramped into production.

Market Sector Details

Industrial revenues were down 5.8% year over year to $403 million, contributing 42% to total revenues.

Healthcare/Life Sciences’ revenues declined 15.7% from the year-ago quarter’s levels to $380 million, contributing 40% to total revenues.

Revenues from Aerospace/Defense increased 24.5% year over year to $178 million, contributing 18% to total revenues.

The company’s top 10 customers accounted for 48% of net revenues in the fiscal third quarter.

Operating Details

Gross profit on a GAAP basis increased 0.8% year over year to $94.4 million.

Selling and administrative expenses increased 8.5% from the year-ago quarter to $45.9 million.

PLXS reported an adjusted operating income of $55.6 million, up 1% year over year. Adjusted operating margin expanded 90 basis points sequentially to 5.8%.

Balance Sheet & Cash Flow

As of Jun 29, 2024, Plexus had cash & cash equivalents worth $269.8 million compared with $252.9 million as of Jul 1, 2023.

As of Jun 30, 2024, PLXS had long-term debt and finance lease obligations, net of the current portion of $90.7 million compared with $187.5 million as of Jul 1, 2023.

In the quarter under review, the cash flow from operations was $131.6 million. Plexus reported a free cash outflow of $114.2 million.

The company repurchased $18.6 million of its shares at an average price of $100.64 per share under its repurchase program. This leaves shares worth $19.5 million available under the existing $50 million authorization.

Outlook

For fourth-quarter fiscal 2024, revenues are projected to be between $990 million and $1.03 billion.

GAAP operating margin is expected to be between 4.6% and 5%. GAAP EPS is expected to be in the band of $1.14-$1.29.

Adjusted EPS is expected in the range of $1.5-$1.65.

Zacks Rank

Plexus currently carries a Zacks Rank #5 (Strong Sell). 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here

Performance of Other Companies

BlackBerry’s (BB Quick QuoteBB - Free Report) reported first-quarter fiscal 2025 adjusted loss per share of 3 cents is narrower than the company’s estimate of a loss of 4-6 cents. In the year-ago quarter, it reported non-GAAP earnings of 6 cents per share. The Zacks Consensus Estimate was pegged at a loss of 4 cents per share.

Shares of BB have lost 48.9% in the past year. 

Badger Meter, Inc (BMI Quick QuoteBMI - Free Report) reported earnings per share (EPS) of $1.12 for second-quarter 2024, beating the Zacks Consensus Estimate by 14.3%. Also, the bottom line compared favorably with the year-ago quarter’s EPS of 76 cents.

Shares of BMI have gained 22% in the past year. 

SAP SE (SAP Quick QuoteSAP - Free Report) reported second-quarter 2024 non-IFRS earnings of €1.10 ($1.18) per share, climbing 59% from the year-ago quarter’s levels. The Zacks Consensus Estimate was pegged at $1.01.

In the past year, shares of SAP have gained 57.9%.