Plexus Beats Up on Analysts Yet Again

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Plexus (NAS: PLXS) reported earnings on Jan. 18. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q1), Plexus met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue contracted, and earnings per share shrank significantly.

Gross margins expanded, operating margins shrank, net margins contracted.

Revenue details
Plexus booked revenue of $530 million. The 10 analysts polled by S&P Capital IQ expected revenue of $528 million. Sales were 6.4% lower than the prior-year quarter's $566 million

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at $0.51. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.48 per share. GAAP EPS of $0.51 for Q1 were 16% lower than the prior-year quarter's $0.61 per share.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 9.8%, 10 basis points better than the prior-year quarter. Operating margin was 4.5%, 30 basis points worse than the prior-year quarter. Net margin was 3.4%, 100 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $550 million. On the bottom line, the average EPS estimate is $0.51.

Next year's average estimate for revenue is $2.3 billion. The average EPS estimate is $2.24.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 357 members out of 379 rating the stock outperform, and 22 members rating it underperform. Among 109 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 106 give Plexus a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Plexus is hold, with an average price target of $27.40.

At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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