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Plexus (PLXS) Down 1.6% Since Earnings Report: Can It Rebound?
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A month has gone by since the last earnings report for Plexus Corp. (PLXS - Free Report) . Shares have lost about 1.6% in that time frame, outperforming the market.
Will the recent negative trend continue leading up to its next earnings release, or is PLXS due for a breakout? Before we dive into how investors and analysts have reacted of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Recent Earnings
Plexus reported fiscal first-quarter 2018 results wherein both the top and the bottom lines missed the Zacks Consensus Estimate.
Adjusted earnings of 75 cents per share missed the Zacks Consensus Estimate of 80 cents and declined 8.5% year over year.
Revenues of $677.3 million also fell behind the consensus mark of $684.7 million but on a year-over-year basis, it increased 6.7%.
Revenues from the Communications sector (20% of total revenue) grew 1.5% year over year to $133 million.
Healthcare/Life Sciences revenues (35%) were up 12.3% from the year-ago quarter to $233 million.
Industrial/Commercial revenues (30%) were up a mere 0.5% year over year to $133 million.
Defense/Security/Aerospace segment revenues (15%) grew 14.9% on a year-over-year basis to $100 million.
Region-wise, revenues from the Americas decreased 5.1% to $299 million. However, revenues from the Asia Pacific region increased 11.6% to $346 million on a year-over-year basis. Revenues from Europe, the Middle East and Africa, which totaled $64 million, also grew 64.1% year over year.
Plexus won 44 new manufacturing programs worth approximately $200 million in the quarter. It added over $794 million in revenues in the trailing four quarters from new wins.
Margins
Plexus reported adjusted operating income of $31.6 million in the quarter, down 6.9% year over year.
Adjusted operating margin contracted 60 basis points on a year-over-year basis to 4.7%.
Balance Sheet & Cash Flow
Plexus exited the quarter with cash & cash equivalents worth $506.7 million compared with $568.9 million as of Sep 30, 2017. The company had long-term debt and capital lease obligations of about $26 million compared with $26.2 million as of Sep 30, 2017.
For the quarter, the company generated $69.1 million in cash flow from operations and used $16.7 million for capital expenditures. Free cash flow came in at about $52.4 million. Share repurchases for the quarter amounted to $9.5 million.
Outlook
For the second quarter of fiscal 2018, revenues are projected in the range of $670-$710 million. GAAP earnings are projected within 68 and 78 cents per share.
Operating margin is expected to be in the band of 4.3% to 4.7%.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates. There have been three revisions lower for the current quarter. In the past month, the consensus estimate has shifted lower by 11.2 % due to these changes.
At this time, PLXS has a strong Growth Score of A, though it is lagging a lot on the momentum front with an F. However, the stock was also allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Zacks' style scores indicate that the company's stock is suitable for value and growth investors.
Outlook
Estimates have been broadly trending downward for the stock and the magnitude of these revisions also indicates a downward shift. Interestingly, PLXS has a Zacks Rank #3 (Hold). We expect in-line returns from the stock in the next few months.
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Plexus (PLXS) Down 1.6% Since Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Plexus Corp. (PLXS - Free Report) . Shares have lost about 1.6% in that time frame, outperforming the market.
Will the recent negative trend continue leading up to its next earnings release, or is PLXS due for a breakout? Before we dive into how investors and analysts have reacted of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Recent Earnings
Plexus reported fiscal first-quarter 2018 results wherein both the top and the bottom lines missed the Zacks Consensus Estimate.
Adjusted earnings of 75 cents per share missed the Zacks Consensus Estimate of 80 cents and declined 8.5% year over year.
Revenues of $677.3 million also fell behind the consensus mark of $684.7 million but on a year-over-year basis, it increased 6.7%.
Revenues from the Communications sector (20% of total revenue) grew 1.5% year over year to $133 million.
Healthcare/Life Sciences revenues (35%) were up 12.3% from the year-ago quarter to $233 million.
Industrial/Commercial revenues (30%) were up a mere 0.5% year over year to $133 million.
Defense/Security/Aerospace segment revenues (15%) grew 14.9% on a year-over-year basis to $100 million.
Region-wise, revenues from the Americas decreased 5.1% to $299 million. However, revenues from the Asia Pacific region increased 11.6% to $346 million on a year-over-year basis. Revenues from Europe, the Middle East and Africa, which totaled $64 million, also grew 64.1% year over year.
Plexus won 44 new manufacturing programs worth approximately $200 million in the quarter. It added over $794 million in revenues in the trailing four quarters from new wins.
Margins
Plexus reported adjusted operating income of $31.6 million in the quarter, down 6.9% year over year.
Adjusted operating margin contracted 60 basis points on a year-over-year basis to 4.7%.
Balance Sheet & Cash Flow
Plexus exited the quarter with cash & cash equivalents worth $506.7 million compared with $568.9 million as of Sep 30, 2017. The company had long-term debt and capital lease obligations of about $26 million compared with $26.2 million as of Sep 30, 2017.
For the quarter, the company generated $69.1 million in cash flow from operations and used $16.7 million for capital expenditures. Free cash flow came in at about $52.4 million. Share repurchases for the quarter amounted to $9.5 million.
Outlook
For the second quarter of fiscal 2018, revenues are projected in the range of $670-$710 million. GAAP earnings are projected within 68 and 78 cents per share.
Operating margin is expected to be in the band of 4.3% to 4.7%.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates. There have been three revisions lower for the current quarter. In the past month, the consensus estimate has shifted lower by 11.2 % due to these changes.
Plexus Corp. Price and Consensus
Plexus Corp. Price and Consensus | Plexus Corp. Quote
VGM Scores
At this time, PLXS has a strong Growth Score of A, though it is lagging a lot on the momentum front with an F. However, the stock was also allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Zacks' style scores indicate that the company's stock is suitable for value and growth investors.
Outlook
Estimates have been broadly trending downward for the stock and the magnitude of these revisions also indicates a downward shift. Interestingly, PLXS has a Zacks Rank #3 (Hold). We expect in-line returns from the stock in the next few months.