Plexus Corp (PLXS) to Post Q3 Earnings: Key Factors to Note
Plexus Corp PLXS is slated to report third-quarter 2023 results on Jul 26.
The Zacks Consensus Estimate for third-quarter revenues is pegged at $1.03 billion, which suggests growth of 4.5% from the year-ago quarter’s reported figure. The consensus mark for earnings per share (EPS) is pegged at $1.15, indicating a year-over-year decrease of 13.5%.
The company’s earnings beat the Zacks Consensus Estimate in all the last four quarters. It has a trailing four-quarter earnings surprise of 21.6%, on average.
For third-quarter fiscal 2023, the company projects revenues between $1 billion and $1.05 billion. Non-GAAP EPS is expected to be in the range of $1.05-$1.23, including 19 cents of stock-based compensation expenses, but excludes 29 cents in restructuring charges.
Plexus Corp. Price and EPS Surprise
Plexus Corp. price-eps-surprise | Plexus Corp. Quote
Factors to Note
Plexus’s performance in the fiscal third quarter is likely to have benefited from new manufacturing contract wins. In the last reported quarter, the company won 31 manufacturing contracts worth $275 million in annualized revenues when fully ramped into production. Also, trailing four-quarter manufacturing wins totaled more than $847 million in annualized revenues.
The company anticipates its Aerospace and Defense segment to gain momentum owing to new program ramps and rising demand for its solutions in commercial aerospace. In the third quarter, the company expects a mid-single-digit decline in the Aerospace and Defense segment.
Also, the funnel of qualified manufacturing is expected to have benefited from customers re-evaluating their internal manufacturing strategies. Additionally, Plexus is making considerable strides in its global energy-saving activities, lowering the relative electricity use at its production facilities by almost 10%.
However, the company’s performance is likely to have been affected due to uncertainty prevailing over global macroeconomic conditions, geopolitical instability and supply-chain disruptions. Customer concentration risks and stiff competition are further concerns.
What Our Model Says
Our proven model does not predict an earnings beat for PLXS this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, this is not the case here.
PLXS has an Earnings ESP of 0.00% and sports a Zacks Rank #1. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With Favorable Combination
Here are some stocks that you may consider, as our proven model shows that these also have the right mix of elements to beat estimates this time around.
Tyler Technologies TYL has an Earnings ESP of +0.54% and currently sports a Zacks Rank #1. TYL is scheduled to report quarterly numbers on Jul 26. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for TYL’s to-be-reported quarter’s earnings and revenues is pegged at $1.86 per share and $490.7 million, respectively. Shares of TYL have rallied 20.8% in the past year.
Cadence Design Systems CDNS has an Earnings ESP of +0.67% and currently sports a Zacks Rank #1. CDNS is scheduled to report earnings on Jul 24.
The Zacks Consensus Estimate for CDNS’s to-be-reported quarter’s earnings and revenues is pegged at $1.18 per share and $973.2 million, respectively. Shares of CDNS have gained 55.3% in the past year.
Meta Platforms META has an Earnings ESP of +5.89% and currently carries a Zacks Rank #2. META is set to report its second-quarter 2023 results on Jul 26.
The Zacks Consensus Estimate for META’s to-be-reported quarter’s earnings and revenues is pegged at $2.85 per share and $30.8 billion, respectively. Shares of META have gained 159.3% year to date.
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Plexus Corp. (PLXS) : Free Stock Analysis Report
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Meta Platforms, Inc. (META) : Free Stock Analysis Report
