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Plexus Corp PLXS is slated to report first-quarter fiscal 2025 earnings on Jan. 22, after closing bell.
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The Zacks Consensus Estimate for fiscal first-quarter revenues is pegged at $983.7 million, implying a marginal gain of 0.1% from the year-ago quarter’s reported figure. The consensus mark for earnings per share (EPS) is pegged at $1.59, indicating a 52.9% year-over-year increase. The estimate for the bottom line has improved 1 cent in the past 60 days.
For first-quarter fiscal 2025, the company expects revenues to be between $960 million and $1 billion. Non-GAAP EPS is expected to be in the range of $1.52-$1.67.
The company’s earnings beat the Zacks Consensus Estimate in three of the last four quarters and missed once, delivering an average surprise of 10.3%.
Factors at Play for PLXS
Continued demand weakness in the industrial market sector and the EMEA region remains concerning for Plexus in the near term. These factors are expected to have affected sequential revenue growth in the fiscal first quarter. Uncertainty prevailing over global macroeconomic conditions, geopolitical headwinds, customer concentration risks, stiff rivalry and supply-chain challenges remain additional concerns.
Segment-wise, management expects Aerospace/Defense to sequentially decline in the high single digits in the fiscal first quarter, mainly due to weakness in the commercial aerospace subsector offsetting strong performance in the space subsector.
Healthcare/Life Sciences sector is anticipated to decline in the high single digits, due to some continued inventory corrections and the pulling forward of activity in the fourth quarter of fiscal 2024.
Revenues are expected to decline in mid-single digits for Industrial sector, owing to demand instability across several subsectors offsetting gains in the semiconductor capital equipment vertical.
Plexus Corp. Price and EPS Surprise
Plexus Corp. price-eps-surprise | Plexus Corp. Quote
We expect revenues from Aerospace/Defense unit to be $168.4 million, up 0.8% year over year. Revenues from Healthcare/Life Sciences and Industrial sectors are expected to be $383.6 million (up 0.7% year over year) and $430.4 million (down 1% year over year).
Nonetheless, Plexus’s performance is likely to have been cushioned by new manufacturing program wins. It ended fiscal 2024 with manufacturing program wins exceeding $1 billion, including $568 million from Healthcare/Life Sciences sector. The funnel of qualified manufacturing opportunities is pegged at $3.5 billion, indicating a strong pipeline for growth. The company expects this positive demand trend to be a key catalyst in the quarter’s performance.