Plexus Corp (PLXS, Financial) released its 8-K filing on July 24, 2024, detailing its financial performance for the fiscal third quarter ended June 29, 2024. Plexus Corp is a U.S based Electronic Manufacturing Services company that provides a range of services, from conceptualization and design to fulfilling orders and providing sustaining solutions, such as replenishment and refurbishment. The company's segments comprise AMER, APAC, and EMEA.
Performance Overview
Plexus Corp (PLXS, Financial) reported fiscal third quarter 2024 revenue of $961 million, which fell short of the analyst estimate of $981.25 million. The company also reported GAAP diluted earnings per share (EPS) of $0.91, missing the estimated EPS of $1.04. However, on a non-GAAP basis, the company reported an adjusted EPS of $1.45, which excludes $0.24 of stock-based compensation expense and $0.30 of restructuring and other charges, net of tax.
Financial Achievements and Challenges
Despite missing revenue and GAAP EPS estimates, Plexus Corp (PLXS, Financial) achieved several financial milestones. The company reported a non-GAAP operating margin of 5.8%, exceeding its guidance range. Additionally, Plexus generated free cash flow of $114 million, contributing to a fiscal year-to-date free cash flow of $147 million. The company also repurchased $18.6 million of its shares at an average price of $100.64 per share under its repurchase program.
"Our team delivered superior operational performance for the fiscal third quarter, which enabled outstanding financial results," said Todd Kelsey, President and Chief Executive Officer. "Revenue of $961 million was within our guidance range, while non-GAAP operating margin and non-GAAP EPS of 5.8% and $1.45, respectively, exceeded our guidance ranges."
Income Statement Highlights
| Three Months Ended | Jun 29, 2024 | Mar 30, 2024 | Jul 1, 2023 |
|---|---|---|---|
| Revenue | $960,751 | $966,900 | $1,021,610 |
| Gross Profit | $94,415 | $88,063 | $93,646 |
| Operating Income | $39,246 | $29,470 | $28,204 |
| Net Income | $25,140 | $16,239 | $15,799 |
| Diluted EPS | $0.91 | $0.58 | $0.56 |
Balance Sheet and Cash Flow
Plexus Corp (PLXS, Financial) reported a significant improvement in its cash cycle, which stood at 83 days, three days favorable to expectations and sequentially lower by eight days. The company also reduced its borrowing by $89 million and repurchased $18.6 million of its shares during the fiscal third quarter.
"The $114 million of free cash flow generated during the fiscal third quarter significantly exceeded our expectations," said Patrick Jermain, Executive Vice President and Chief Financial Officer. "Continued progress on our working capital initiatives contributed to this strong performance."
Future Outlook
Looking ahead, Plexus Corp (PLXS, Financial) has initiated fiscal fourth quarter 2024 revenue guidance of $990 million to $1.03 billion with GAAP diluted EPS of $1.14 to $1.29. The company also provided non-GAAP EPS guidance of $1.50 to $1.65, excluding stock-based compensation expense.
"We are witnessing signs of strengthening demand across each of our market sectors, with share gains and new program ramps further bolstering our ongoing and continued expectations for revenue growth," added Mr. Kelsey.
For more detailed information, please refer to the 8-K filing.
Explore the complete 8-K earnings release (here) from Plexus Corp for further details.
