Plexus Q3 adjusted EPS beats estimates

Overview

• Plexus fiscal Q3 revenue of $1.018 bln largely in-line with analyst expectations, per LSEG data

• Adjusted EPS of $1.90 beats analyst estimates, per LSEG data

Outlook

• Plexus projects Q4 revenue of $1.025 bln to $1.065 bln

• Company expects Q4 GAAP EPS of $1.57 to $1.72, including $0.25 of stock-based compensation expense

• Plexus anticipates Q4 non-GAAP EPS of $1.82 to $1.97

• Company sees revenue growth from share gains and new customers

Result Drivers

• EFFICIENCY INITIATIVES - Co attributes "strong" qtr performance to numerous efficiency initiatives, per CEO Todd Kelsey

• MANUFACTURING WINS - Plexus secured 41 manufacturing programs, representing $250 mln in annualized revenue, when fully ramped into production

• CASH CYCLE IMPROVEMENTS - Reduction in gross inventory balance and improved cash cycle contributed to strong ROIC of 14.1%, per CFO Patrick Jermain

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the electronic equipment & parts peer group is "buy."

• Wall Street's median 12-month price target for Plexus Corp is $160.00, about 16.5% above its July 22 closing price of $133.62

• The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 18 three months ago

Press Release: ID:nGNXX7BPr