Plexus Q1 2020 Earnings Report
Key Takeaways
Plexus reported a strong performance in the fiscal first quarter, with record quarterly revenue of $852 million and adjusted diluted EPS of $1.00, both exceeding expectations. The company generated $61 million in free cash flow and reduced its cash cycle by 9 days.
Record quarterly revenue of $852 million was achieved.
GAAP diluted EPS was $1.03.
Non-GAAP adjusted diluted EPS was $1.00, excluding a net benefit of $0.03 per share related to special tax items.
30 manufacturing programs were won during the quarter, representing $167 million in annualized revenue when fully ramped into production.
Plexus
Plexus
Plexus Revenue by Segment
Plexus Revenue by Geographic Location
Forward Guidance
For the fiscal second quarter of 2020, Plexus expects revenue between $790 to $830 million and GAAP diluted EPS in the range of $0.80 to $0.90, excluding any non-recurring charges.
Positive Outlook
- Revenue expected to be between $790 to $830 million.
- Expects to return to operating margin within target range of 4.7% to 5.0%.
- Sees robust EPS expansion for the fiscal year.
- Anticipates sequentially increasing revenue during the second half of the fiscal year.
- Company has largely stable end-markets.
Challenges Ahead
- Revenue is expected to moderate from the exceptionally strong fiscal first quarter.
- GAAP diluted EPS is projected to be in the range of $0.80 to $0.90, excluding any non-recurring charges.
- EPS projection is impacted by seasonal payroll costs.
- EPS projection is impacted by the pause of two larger programs in the engineering organization.
- Company is strategically repositioning its Boulder Design Center to co-locate with its existing manufacturing facility in Boise, ID due to program pauses.
Revenue & Expenses
Visualization of income flow from segment revenue to net income