Plexus Corp PLXS reported third-quarter fiscal 2024 adjusted earnings per share (EPS) of $1.45, down 0.7% year over year. The figure outpaced the Zacks Consensus Estimate of $1.28 per share.
Revenues of $961 million decreased 6% year over year. The top-line contraction was due to poor performance in the Healthcare/Life Sciences and Industrial sectors. Revenues missed the Zacks Consensus Estimate by 1.95%.
In the reported quarter, revenues from the Asia-Pacific and America declined 8.7% and 10.5%, respectively. Revenues from Europe, the Middle East and Africa rose 30.5%.
During the fiscal third quarter, Plexus won 35 manufacturing programs, which are estimated to contribute $279 million in annualized revenues once fully ramped into production.
Plexus Corp. Price, Consensus and EPS Surprise 
Plexus Corp. price-consensus-eps-surprise-chart | Plexus Corp. Quote
Market Sector Details
Industrial revenues were down 5.8% year over year to $403 million, contributing 42% to total revenues.
Healthcare/Life Sciences’ revenues declined 15.7% from the year-ago quarter’s levels to $380 million, contributing 40% to total revenues.
Revenues from Aerospace/Defense increased 24.5% year over year to $178 million, contributing 18% to total revenues.
The company’s top 10 customers accounted for 48% of net revenues in the fiscal third quarter.
Operating Details
Gross profit on a GAAP basis increased 0.8% year over year to $94.4 million.
Selling and administrative expenses increased 8.5% from the year-ago quarter to $45.9 million.
PLXS reported an adjusted operating income of $55.6 million, up 1% year over year. Adjusted operating margin expanded 90 basis points sequentially to 5.8%.
Balance Sheet & Cash Flow
As of Jun 29, 2024, Plexus had cash & cash equivalents worth $269.8 million compared with $252.9 million as of Jul 1, 2023.
As of Jun 30, 2024, PLXS had long-term debt and finance lease obligations, net of the current portion of $90.7 million compared with $187.5 million as of Jul 1, 2023.
In the quarter under review, the cash flow from operations was $131.6 million. Plexus reported a free cash outflow of $114.2 million.
The company repurchased $18.6 million of its shares at an average price of $100.64 per share under its repurchase program. This leaves shares worth $19.5 million available under the existing $50 million authorization.
Outlook
For fourth-quarter fiscal 2024, revenues are projected to be between $990 million and $1.03 billion.
GAAP operating margin is expected to be between 4.6% and 5%. GAAP EPS is expected to be in the band of $1.14-$1.29.
Adjusted EPS is expected in the range of $1.5-$1.65.
Zacks Rank
Plexus currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
Performance of Other Companies
BlackBerry’s BB reported first-quarter fiscal 2025 adjusted loss per share of 3 cents is narrower than the company’s estimate of a loss of 4-6 cents. In the year-ago quarter, it reported non-GAAP earnings of 6 cents per share. The Zacks Consensus Estimate was pegged at a loss of 4 cents per share.
Shares of BB have lost 48.9% in the past year.
Badger Meter, Inc BMI reported earnings per share (EPS) of $1.12 for second-quarter 2024, beating the Zacks Consensus Estimate by 14.3%. Also, the bottom line compared favorably with the year-ago quarter’s EPS of 76 cents.
Shares of BMI have gained 22% in the past year.
SAP SE SAP reported second-quarter 2024 non-IFRS earnings of €1.10 ($1.18) per share, climbing 59% from the year-ago quarter’s levels. The Zacks Consensus Estimate was pegged at $1.01.
In the past year, shares of SAP have gained 57.9%.
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