Plexus Q1 2024 Earnings Report
Key Takeaways
Plexus announced fiscal first quarter 2024 revenue of $983 million, GAAP operating margin of 4.6% and GAAP diluted EPS of $1.04. They initiated fiscal second quarter 2024 revenue guidance of $930 million to $970 million with GAAP diluted EPS of $0.48 to $0.63.
Won 30 manufacturing programs during the quarter representing $261 million in annualized revenue when fully ramped into production.
Trailing four-quarter manufacturing wins of $1.05 billion in annualized revenue when fully ramped into production.
The Board of Directors approved a new $50.0 million share repurchase program that will commence upon completion of the current share repurchase authorization, which has $5.7 million remaining.
Funnel of qualified manufacturing opportunities significantly expanded by more than $300 million from the prior quarter to $4.0 billion.
Plexus
Plexus
Plexus Revenue by Segment
Plexus Revenue by Geographic Location
Forward Guidance
Plexus is guiding fiscal second quarter revenue of $930 million to $970 million, non-GAAP operating margin of 4.0% to 4.4% and non-GAAP EPS of $0.80 to $0.95. The fiscal second quarter is anticipated to represent a revenue trough, with sequential expansion in revenue and operating margin during the second half of fiscal 2024.
Positive Outlook
- Expect to deliver improved profitability resulting from the restructuring actions.
- Expect to deliver improved profitability resulting from increased manufacturing revenue.
- Expect to deliver improved profitability resulting from improved utilization of our engineering team.
- Remain committed to delivering 5.5% GAAP operating margin in fiscal 2025.
- Expect Plexus will continue to drive share gain from large and increasing addressable markets by leveraging our differentiated service offering.
Challenges Ahead
- Continued demand softening in the Healthcare/Lifesciences market has created inefficiencies within our engineering and manufacturing teams.
- Continued demand softening in certain subsectors of our Industrial sector has created inefficiencies within our engineering and manufacturing teams.
- Implementing a series of actions that we believe will result in fiscal second quarter restructuring charges of approximately $10 million, or $0.32 per share.
- Guiding slightly higher cash cycle days for our fiscal second quarter related to additional working capital investments in support of new program ramps.
- Expect to complete these actions by our fiscal third quarter.
Revenue & Expenses
Visualization of income flow from segment revenue to net income