Plexus Q2 2024 Earnings Report
Key Takeaways
Plexus reported fiscal second quarter revenue of $967 million and non-GAAP EPS of $0.94, which met the top end of guidance. The company generated free cash flow of $65 million.
Won 32 manufacturing programs during the quarter representing $255 million in annualized revenue when fully ramped into production.
Purchased $17.6 million of shares at an average price of $94.39 per share under repurchase programs.
Generated free cash flow of $65 million.
Cash cycle of 91 days, 10 days favorable to expectations and sequentially lower by four days.
Plexus
Plexus
Plexus Revenue by Segment
Plexus Revenue by Geographic Location
Forward Guidance
Plexus is guiding fiscal third quarter revenue of $960 million to $1.00 billion, non-GAAP operating margin of 5.2% to 5.6% and non-GAAP EPS of $1.22 to $1.37.
Positive Outlook
- Revenue growth is in the early stages of inflecting higher.
- Benefiting from robust demand within the Aerospace and Defense market sector.
- Gradually recovering semiconductor capital equipment demand.
- New program ramps are mitigating inventory correction headwinds in Healthcare/Lifesciences.
- New program ramps are mitigating inventory correction headwinds in Industrial market sectors.
Challenges Ahead
- Non-GAAP operating margin excludes approximately $6.5 million of restructuring charges associated with realigning manufacturing capabilities to best support long-term customer needs
- Non-GAAP operating margin excludes approximately $6.2 million of stock-based compensation expense.
- Inventory correction headwinds in Healthcare/Lifesciences market sectors.
- Inventory correction headwinds in Industrial market sectors.
- Restructuring charges associated with realigning manufacturing capabilities.
Revenue & Expenses
Visualization of income flow from segment revenue to net income