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Plexus (PLXS) Up 10.2% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for Plexus (PLXS - Free Report) . Shares have added about 10.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Plexus due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Plexus Q4 Earnings Top Estimates
Plexus reported adjusted earnings per share (EPS) of $1.85 for fourth-quarter fiscal 2024. The figure rose 12% year over year. The bottom line outpaced the Zacks Consensus Estimate of $1.53.
Revenues of $1.05 billion increased 2.6% year over year and beat the Zacks Consensus Estimate by 4.3%. The top-line expansion was driven by strong regional performance (Asia-Pacific and Europe, Middle East and Africa) and strength in the Aerospace/Defense and Industrial sectors. Management expects continued growth for the Aerospace/Defense sector in fiscal 2025. It also expects the Industrial segment to gain from strength in SemiCap market offsetting near-term industrial demand uncertainty.
In the reported quarter, revenues from Asia-Pacific and Europe, the Middle East and Africa rose 11% and 18.5%, respectively. Revenues from America declined 13.9% to $335 million.
In the fiscal fourth quarter, Plexus won 26 manufacturing programs, which are estimated to contribute $230 million in annualized revenues once fully ramped into production.
For fiscal 2024, the company reported revenues of $3.96 billion, down 5.9% from the fiscal 2023 level. Adjusted EPS of $5.72 declined 11.5% year over year.
Market Sector Details
Industrial sector’s revenues were up 8.4% year over year to $452 million, contributing 43% to total revenues.
Healthcare/Life Sciences’ revenues declined 7.6% from the year-ago quarter’s levels to $415 million, contributing 39% to total revenues.
Revenues from Aerospace/Defense increased 16.5% year over year to $184 million, contributing 18% to total revenues.
The company’s top 10 customers accounted for 52% of net revenues in the fiscal fourth quarter.
Operating Details
Gross profit on a GAAP basis increased 11.6% year over year to $107.9 million. Gross margin came in at 10.3% from 9.4% year over year.
Selling and administrative expenses increased 24.6% from the year-ago quarter’s actuals to $54.1 million.
It reported an adjusted operating income of $64.7 million, up 9.4% year over year. Adjusted operating margin expanded 40 basis points to 6.2%.
Balance Sheet & Cash Flow
As of Sept. 28, 2024, Plexus had cash & cash equivalents worth $345.1 million compared with $269.8 million as of June 29.
As of Sept. 28, 2024, the company had long-term debt and finance lease obligations, net of the current portion of $90 million compared with $90.7 million as of June 29.
In the quarter under review, the cash flow from operations was $220.1 million. Plexus reported a free cash flow of $193.8 million.
Plexus repurchased $19.5 million of the company’s shares at an average price of $117.91 per share under its repurchase program. Plexus’ board of directors approved an additional $50 million worth share repurchase plan in August 2024.
Q1 Outlook
For first-quarter fiscal 2025, revenues are projected to be between $960 million and $1 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 $1.52-$1.67.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
The consensus estimate has shifted 11.45% due to these changes.
VGM Scores
Currently, Plexus has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Plexus has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
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Plexus (PLXS) Up 10.2% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Plexus (PLXS - Free Report) . Shares have added about 10.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Plexus due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Plexus Q4 Earnings Top Estimates
Plexus reported adjusted earnings per share (EPS) of $1.85 for fourth-quarter fiscal 2024. The figure rose 12% year over year. The bottom line outpaced the Zacks Consensus Estimate of $1.53.
Revenues of $1.05 billion increased 2.6% year over year and beat the Zacks Consensus Estimate by 4.3%. The top-line expansion was driven by strong regional performance (Asia-Pacific and Europe, Middle East and Africa) and strength in the Aerospace/Defense and Industrial sectors. Management expects continued growth for the Aerospace/Defense sector in fiscal 2025. It also expects the Industrial segment to gain from strength in SemiCap market offsetting near-term industrial demand uncertainty.
In the reported quarter, revenues from Asia-Pacific and Europe, the Middle East and Africa rose 11% and 18.5%, respectively. Revenues from America declined 13.9% to $335 million.
In the fiscal fourth quarter, Plexus won 26 manufacturing programs, which are estimated to contribute $230 million in annualized revenues once fully ramped into production.
For fiscal 2024, the company reported revenues of $3.96 billion, down 5.9% from the fiscal 2023 level. Adjusted EPS of $5.72 declined 11.5% year over year.
Market Sector Details
Industrial sector’s revenues were up 8.4% year over year to $452 million, contributing 43% to total revenues.
Healthcare/Life Sciences’ revenues declined 7.6% from the year-ago quarter’s levels to $415 million, contributing 39% to total revenues.
Revenues from Aerospace/Defense increased 16.5% year over year to $184 million, contributing 18% to total revenues.
The company’s top 10 customers accounted for 52% of net revenues in the fiscal fourth quarter.
Operating Details
Gross profit on a GAAP basis increased 11.6% year over year to $107.9 million. Gross margin came in at 10.3% from 9.4% year over year.
Selling and administrative expenses increased 24.6% from the year-ago quarter’s actuals to $54.1 million.
It reported an adjusted operating income of $64.7 million, up 9.4% year over year. Adjusted operating margin expanded 40 basis points to 6.2%.
Balance Sheet & Cash Flow
As of Sept. 28, 2024, Plexus had cash & cash equivalents worth $345.1 million compared with $269.8 million as of June 29.
As of Sept. 28, 2024, the company had long-term debt and finance lease obligations, net of the current portion of $90 million compared with $90.7 million as of June 29.
In the quarter under review, the cash flow from operations was $220.1 million. Plexus reported a free cash flow of $193.8 million.
Plexus repurchased $19.5 million of the company’s shares at an average price of $117.91 per share under its repurchase program. Plexus’ board of directors approved an additional $50 million worth share repurchase plan in August 2024.
Q1 Outlook
For first-quarter fiscal 2025, revenues are projected to be between $960 million and $1 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 $1.52-$1.67.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
The consensus estimate has shifted 11.45% due to these changes.
VGM Scores
Currently, Plexus has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Plexus has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.