Plexus (PLXS) Q4 Earnings Top Estimates, Revenue Falls Y/Y

Plexus Corp. (PLXS) reported lower earnings per share for the fourth quarter and fiscal year, missing analysts’ estimates.

Revenue declined year-over-year but topped expectations.

The company noted a decline in revenue from its healthcare/life sciences sector.

However, revenue from the aerospace/defense sector increased.

PLXS also announced a share repurchase program worth $50 million.

Plexus (PLXS) Q4 Earnings Top Estimates, Revenue Falls Y/Y

Plexus Corp. (PLXS) reported mixed results for the fourth quarter of fiscal 2023, with earnings per share (EPS) decreasing year-over-year (YOY) but surpassing Zacks Consensus Estimate. The company’s revenue for the quarter was $239.4 million, a decrease of 4.7% YOY. This decline in revenue was primarily due to weakness in the healthcare/life sciences industry, which was partially offset by growth in the aerospace/defense and industrial sectors.

The company’s adjusted EPS for the quarter was $1.35, a decrease of 10.2% YOY. This decline in EPS was primarily due to lower gross margin and increased administrative expenses. However, the adjusted EPS surpassed the Zacks Consensus Estimate of $1.34 per share.

Plexus also noted that its funnel of qualified manufacturing opportunities increased to $1.2 billion from $1.0 billion in the previous quarter. The company also won new manufacturing contracts worth $24 million in annualized revenue during the quarter, bringing its total manufacturing wins for the year to $100 million in annualized revenue.

The company’s net income for the quarter was $26.9 million, a decrease of 11.4% YOY. This decline in net income was primarily due to the lower gross margin and increased administrative expenses.

For the first quarter of fiscal 2024, Plexus projects revenue to be in the range of $225 million to $235 million, with a GAAP operating margin of 9.0% to 10.0% and a GAAP diluted EPS of $1.23 to $1.33 per share. The company also announced that it has repurchased $10 million worth of its shares during the fourth quarter.

Analysts are currently considering Plexus’ current Zacks Rank of “Hold” and the broader technology space, which includes companies such as ASUR Software (ASUR), Synopsis (SNPS), and Wix.com (WIX). ASUR Software has seen its EPS increase by 14.3% over the past 30 days and has beaten Zacks Consensus Estimates in the last four quarters. Synopsis has seen its long-term earnings growth rate increase by 13.6% over the past five years and has outperformed the market over the past year. Wix.com has seen its EPS remain unchanged over the past 30 days and has beaten estimates in the trailing four quarters, delivering an average surprise of 23.6%.