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It has been about a month since the last earnings report for Plexus (PLXS). Shares have added about 10.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Plexus due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Plexus Q4 Earnings Top Estimates
Plexus reported adjusted earnings per share (EPS) of $1.85 for fourth-quarter fiscal 2024. The figure rose 12% year over year. The bottom line outpaced the Zacks Consensus Estimate of $1.53.
Revenues of $1.05 billion increased 2.6% year over year and beat the Zacks Consensus Estimate by 4.3%. The top-line expansion was driven by strong regional performance (Asia-Pacific and Europe, Middle East and Africa) and strength in the Aerospace/Defense and Industrial sectors. Management expects continued growth for the Aerospace/Defense sector in fiscal 2025. It also expects the Industrial segment to gain from strength in SemiCap market offsetting near-term industrial demand uncertainty.
In the reported quarter, revenues from Asia-Pacific and Europe, the Middle East and Africa rose 11% and 18.5%, respectively. Revenues from America declined 13.9% to $335 million.
In the fiscal fourth quarter, Plexus won 26 manufacturing programs, which are estimated to contribute $230 million in annualized revenues once fully ramped into production.
For fiscal 2024, the company reported revenues of $3.96 billion, down 5.9% from the fiscal 2023 level. Adjusted EPS of $5.72 declined 11.5% year over year.
Market Sector Details
Industrial sector’s revenues were up 8.4% year over year to $452 million, contributing 43% to total revenues.
Healthcare/Life Sciences’ revenues declined 7.6% from the year-ago quarter’s levels to $415 million, contributing 39% to total revenues.
Revenues from Aerospace/Defense increased 16.5% year over year to $184 million, contributing 18% to total revenues.
The company’s top 10 customers accounted for 52% of net revenues in the fiscal fourth quarter.
Operating Details
Gross profit on a GAAP basis increased 11.6% year over year to $107.9 million. Gross margin came in at 10.3% from 9.4% year over year.
Selling and administrative expenses increased 24.6% from the year-ago quarter’s actuals to $54.1 million.
It reported an adjusted operating income of $64.7 million, up 9.4% year over year. Adjusted operating margin expanded 40 basis points to 6.2%.