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Plexus Corp PLXS is slated to report second-quarter fiscal 2025 earnings on April 23, after the closing bell.
The Zacks Consensus Estimate for fiscal second-quarter revenues is pegged at $980.5 million, implying a rise of 1.4% from the year-ago quarter’s reported figure. The consensus mark for earnings per share (EPS) is pegged at $1.54, indicating a 63.8% year-over-year increase. The estimate for the bottom line has remained unchanged in the past 60 days.
For second-quarter fiscal 2025, the company expects revenues between $960 million and $1 billion. Non-GAAP EPS is expected to be in the range of $1.46-$1.61.
The company’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 12.77%, on average. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Factors at Play for PLXS’ Q2 Earnings
Plexus’ performance is likely to have been cushioned by new manufacturing program wins. In the fiscal first quarter, Plexus won 30 manufacturing programs, representing $212 million in annualized revenues once fully ramped into production. It ended the fiscal first quarter with manufacturing program wins, including $130 million from the Healthcare/Life Sciences sector. The funnel of qualified manufacturing opportunities is pegged at $3.6 billion, indicating a strong pipeline for growth. The company expects this positive demand trend to have been a key catalyst in the quarter’s performance.
Segment-wise, management expects Aerospace/Defense to sequentially increase in the high single-digits in the fiscal second quarter, mainly due to broad-based increases in demand, which are expected to have offset the near-term challenges in the commercial aerospace market.
Healthcare/Life Sciences sector is anticipated to increase in the high single digits, due to strength in new program ramps.
Plexus Corp. Price and EPS Surprise
Plexus Corp. price-eps-surprise | Plexus Corp. Quote
We expect revenues from Aerospace/Defense unit to be $173.8 million, up 2.1% year over year. Revenues from Healthcare/Life Sciences are anticipated to be $406.5 million, up 7.4% year over year.
Continued demand weakness in the industrial market sector remains concerning for Plexus in the near term. Revenues for the fiscal second quarter are forecasted to sequentially decline in high-single-digit to low-double-digit percentage for the Industrial sector, owing to demand instability across several subsectors offsetting gains in the semiconductor capital equipment vertical. We expect quarterly revenues from Industrial sector to be down 4.3% year over year to $400.4 million.