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Jan 04, 2020
Plexus Q1 2020 Earnings Report
Plexus' fiscal first quarter of 2020 financial results were announced, featuring record quarterly revenue.
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
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.