Plexus Corp PLXS is slated to report fiscal third-quarter 2024 results on Jul 24.
The Zacks Consensus Estimate for fiscal third-quarter revenues is pegged at $979.9 million, which suggests a decline of 4.1% from the year-ago quarter’s reported figure. The consensus mark for earnings per share (EPS) is pegged at $1.28, indicating a year-over-year decrease of 3%.
The company’s earnings beat the Zacks Consensus Estimate in three of the last four quarters while missing once. It has a trailing four-quarter earnings surprise of 9%, on average.
For fiscal third-quarter 2024, the company projects revenues between $960 million and $1 billion. Non-GAAP EPS is expected to be in the range of $1.22-$1.37.
Plexus Corp. Price and EPS Surprise
Plexus Corp. price-eps-surprise | Plexus Corp. Quote
Factors to Note
Plexus’ performance in the fiscal third quarter is likely to have benefited from healthy demand from the aerospace and defense market sector and a recovering semiconductor capital equipment vertical. PLXS expects Aerospace/Defense sector revenues to improve sequentially by a high single digit in the third quarter, attributed to strength in the defense, security and space subsectors.
Continued new program ramp up is another tailwind. In the last reported quarter, Plexus secured 32 manufacturing contracts, worth $255 million in annualized revenues when fully ramped into production.
PLXS expects flat revenues for its Healthcare/Life Sciences sector due to near-term demand weakness and inventory corrections.
The company anticipates the Industrial sector to report flat revenues in the fiscal third quarter. Inventory corrections are weighing on demand from various subsectors, which are expected to have offset incremental increases in the semiconductor capital and broadband communications sectors.
Uncertainty prevailing over global macroeconomic conditions, geopolitical instability and volatile supply-chain issues remain headwinds. Customer concentration risks and stiff competition are additional concerns.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for PLXS 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 has an Earnings ESP of 0.00% and carries a Zacks Rank #5 (Strong Sell) at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With Favorable Combination
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.
Philip Morris International Inc. PM has an Earnings ESP of +1.42% and currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
PM is scheduled to report quarterly earnings on Jul 23. The Zacks Consensus Estimate for PM’s to-be-reported quarter’s EPS and revenues is pegged at $1.55 and $9.13 billion, respectively. Shares of PM have gained 9.7% in the past year.
NextEra Energy Partners, LP NEP has an Earnings ESP of +8.11% and currently carries a Zacks Rank #2. NEP is scheduled to report quarterly earnings on Jul 24.
The Zacks Consensus Estimate for NEP’s to-be-reported quarter’s EPS and revenues is pegged at 59 cents and $367 million, respectively. Shares of NEP have lost 54.7% in the past year.
Packaging Corporation of America PKG has an Earnings ESP of +0.13% and a Zacks Rank #2 at present. PKG is set to report quarterly figures on Jul 23.
The Zacks Consensus Estimate for PKG’s to-be-reported quarter’s EPS and revenues is pegged at $2.11 and $2.03 billion, respectively. Shares of PKG have surged 37.9% in the past year.
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