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Plexus Gearing Up to Report Q2 Earnings: Here's What to Expect

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Plexus Corp (PLXS - Free Report) is slated to report second-quarter fiscal 2025 earnings on April 23, after the closing bell. 

The Zacks Consensus Estimate for fiscal second-quarter revenues is pegged at $980.5 million, implying a rise of 1.4% from the year-ago quarter’s reported figure. The consensus mark for earnings per share (EPS) is pegged at $1.54, indicating a 63.8% year-over-year increase. The estimate for the bottom line has remained unchanged in the past 60 days.

For second-quarter fiscal 2025, the company expects revenues between $960 million and $1 billion. Non-GAAP EPS is expected to be in the range of $1.46-$1.61.

The company’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 12.77%, on average. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) 

Factors at Play for PLXS’ Q2 Earnings

Plexus’ performance is likely to have been cushioned by new manufacturing program wins. In the fiscal first quarter, Plexus won 30 manufacturing programs, representing $212 million in annualized revenues once fully ramped into production. It ended the fiscal first quarter with manufacturing program wins, including $130 million from the Healthcare/Life Sciences sector. The funnel of qualified manufacturing opportunities is pegged at $3.6 billion, indicating a strong pipeline for growth. The company expects this positive demand trend to have been a key catalyst in the quarter’s performance.

Segment-wise, management expects Aerospace/Defense to sequentially increase in the high single-digits in the fiscal second quarter, mainly due to broad-based increases in demand, which are expected to have offset the near-term challenges in the commercial aerospace market. 

Healthcare/Life Sciences sector is anticipated to increase in the high single digits, due to strength in new program ramps. 

Plexus Corp. Price and EPS Surprise

Plexus Corp. Price and EPS Surprise

Plexus Corp. price-eps-surprise | Plexus Corp. Quote

We expect revenues from Aerospace/Defense unit to be $173.8 million, up 2.1% year over year. Revenues from Healthcare/Life Sciences are anticipated to be $406.5 million, up 7.4% year over year.

Continued demand weakness in the industrial market sector remains concerning for Plexus in the near term. Revenues for the fiscal second quarter are forecasted to sequentially decline in high-single-digit to low-double-digit percentage for the Industrial sector, owing to demand instability across several subsectors offsetting gains in the semiconductor capital equipment vertical. We expect quarterly revenues from Industrial sector to be down 4.3% year over year to $400.4 million.

What Does Our Model Say About PLXS?

Our proven model does not conclusively predict an earnings beat for Plexus this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, this is not the case here.

PLXS’ Earnings ESP: Plexus has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

PLXS’ Zacks Rank: Plexus currently carries a Zacks Rank #3. 

Stocks to Consider

Here are some stocks you may consider, as our model shows that these have the right combination of elements to beat on earnings this season.

Check Point Software Technologies Ltd. (CHKP - Free Report) currently has an Earnings ESP of +1.71% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here. 

Check Point Software Technologies is scheduled to report quarterly earnings on April 23. The Zacks Consensus Estimate for CHKP’s to-be-reported quarter’s earnings and revenues is pegged at $2.19 per share and $636.4 million, respectively. Shares of CHKP have gained 35.3% in the past year.

Woodward, Inc. (WWD - Free Report) has an Earnings ESP of +3.95% and a Zacks Rank #2 at present. It is scheduled to report quarterly figures on April 28. The Zacks Consensus Estimate for Woodward’s to-be-reported quarter’s earnings and revenues is pegged at $1.44 per share and $829.3 million, respectively. Shares of WWD have gained 14.1% in the past year.

Qorvo, Inc (QRVO - Free Report) has an Earnings ESP of +3.42% and a Zacks Rank #2 at present. QRVO is scheduled to report quarterly figures on April 29. The Zacks Consensus Estimate for QRVO’s to-be-reported quarter’s earnings and revenues is pegged at $1.01 per share and $851.7 million, respectively. Shares of Qorvo have plunged 46.2% in the past year.
 

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