Plexus PLXS reported fourth-quarter fiscal 2019 adjusted earnings of 93 cents per share that beat the Zacks Consensus Estimate by seven cents but decreased 3.1% year over year.
Revenues of $810 million beat the consensus mark of $778 million and increased 5.1% year over year. Strong revenues from Aerospace/Defense, Industrial/Commercial and Healthcare/Life Sciences sectors drove the top line.
Americas (AMER) revenues increased 7.5% year over year to $344 million. Europe, the Middle East and Africa (EMEA) revenues totaled $81 million, up 17.4% year over year. However, Asia-Pacific (APAC) revenues declined 0.5% to $416 million.
Plexus won 35 manufacturing contracts during the quarter, worth $202 million in annualized revenues. Trailing four-quarter manufacturing wins totaled $907 million in annualized revenues.
Plexus Corp. Price, Consensus and EPS Surprise
Plexus Corp. price-consensus-eps-surprise-chart | Plexus Corp. Quote
Market Sector Details
Healthcare/Life Sciences revenues rose 7.6% from the year-ago quarter to $311 million. The sector accounted for 38.4% of total revenues.
Industrial/Commercial revenues grew 8.2% year over year to $264 million and accounted for 32.6% of total revenues.
Aerospace/Defense revenues jumped 45% to $174 million and accounted for 21.5% of total revenues.
Communications accounted for 7.5% of total revenues. Revenues from the sector decreased 48.3% year over year to $61 million.
Notably, the top 10 customers of the company accounted for 51% of net revenues.
Gross profit increased 6.1% year over year to $77.8 million. Moreover, gross margin expanded 10 basis points (bps) year over year to 9.6%.
Selling and administrative expenses (4.8% of revenues) increased 6.2% from the year-ago quarter to approximately $38.6 million.
Plexus reported adjusted operating income of $39.2 million, up 6.1% year over year. However, adjusted operating margin was flat on a year-over-year basis at 4.8%.
Balance Sheet & Cash Flow
As of Sep 28, 2019, Plexus had cash & cash equivalents worth $226.3 million compared with $198.4 million as of Jun 30, 2019.
Moreover, as of Sep 28, 2019, the company had a long-term debt of $187.3 million compared with $187.6 million as of Jun 30, 2019.
In fourth-quarter fiscal 2019, Plexus generated a free cash flow of $92 million.
Further, the company repurchased shares worth $31.4 million at an average price of $58.38 per share.
ROIC (tax-effected annualized adjusted operating income divided by average invested capital over five quarters) was 13.1% for both the fourth quarter and fiscal 2019. Plexus’ weighted average cost of capital for fiscal 2019 was 9%.
For first-quarter fiscal 2020, revenues are projected between $780 million and $820 million. The Zacks Consensus Estimate is currently pegged at $787 million, indicating 2.8% growth from the figure reported in the year-ago quarter.
Additionally, Plexus expects GAAP earnings between 87 cents and 97 cents per share. The consensus mark for earnings is currently pegged at 87 cents, suggesting a decline of 4.4% from the figure reported in the year-ago quarter.
Zacks Rank & Stocks to Consider
Plexus currently carries a Zacks Rank #3 (Hold).
Akamai Technologies AKAM, Alteryx AYX and Cirrus Logic CRUS are some better-ranked stocks in the broader computer and technology sector. All three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Akamai, Cirrus Logic and Alteryx are set to report quarterly results on Oct 28, 30 and 31, respectively.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Akamai Technologies, Inc. (AKAM) : Free Stock Analysis Report
Cirrus Logic, Inc. (CRUS) : Free Stock Analysis Report
Plexus Corp. (PLXS) : Free Stock Analysis Report
Alteryx, Inc. (AYX) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research