) has lowered its first-quarter 2013 guidance due to
weaker-than-expected demand across its business segments. The
company's first quarter 2013 ended on December 29, 2012. The
company also stated that lower revenue from the
Networking/Communications segment led to reduced revenue
The company lowered its fiscal first quarter revenue guidance
from $550 million-$580 million to $531 million. Though the
revenue guidance reflects marginal improvement from the year-ago
quarter, it is well short of the Zacks Consensus Estimate of $561
Moreover, the disengagement with
) is expected to impact revenue in the short term as the company
contributed 16% of the revenues and was the only customer
accounting for 10% or more of revenues during fiscal 2012.
Now coming to the earnings part, Plexus also lowered its
earnings per share expectation from 50 cents-55 cents to the
range of 45 cents-47 cents. The Zacks Consensus Estimate is
pegged at 51 cents, flat on a year-over-year basis.
In fourth quarter 2012, Plexus reported adjusted earnings of
66 cents per share, which surpassed the Zacks Consensus Estimate
by 3 cents and was in line with the high end of management's
guided range of 60 cents-66 cents per share.
Total revenue increased 10.5% on a year-over-year basis to
$594.8 million, which was at the lower end of management's guided
range of $590 million-$620 million, but missed the Zacks
Consensus Estimate of $604.0 million. The year-over-year increase
in revenue was primarily driven by strong performance from all
its business segments.
We believe that new business opportunities, particularly in
the industrial/commercial and medical sector along with global
expansion will drive growth over the long term. Moreover, the
disengagement with Juniper is expected to improve the product
Nonetheless, intense competition, continued component
challenges and supply chain constraints remain major concerns for
Plexus over the long term. Additionally, the company's tepid
forecast is a headwind going forward. Macroeconomic sluggishness
and startup costs of new programs are the near-term
Currently, Plexus has a Zacks Rank #3 (Hold).
JUNIPER NETWRKS (JNPR): Free Stock Analysis
PLEXUS CORP (PLXS): Free Stock Analysis
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