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Jul 04, 2020

Plexus Q3 2020 Earnings Report

Announced fiscal third quarter financial results

Key Takeaways

Plexus reported record quarterly revenue of $857 million and GAAP diluted EPS of $1.20 for the fiscal third quarter of 2020. The company initiates fiscal fourth quarter 2020 revenue guidance of $850 to $890 million with GAAP diluted EPS guidance of $1.05 to $1.20, excluding unforeseen impacts relating to COVID-19.

Record quarterly revenue of $857 million for the fiscal third quarter of 2020

GAAP diluted EPS of $1.20

GAAP operating margin of 5.3%, the best quarterly margin result in three years

Won 35 manufacturing programs during the quarter representing an expected $252 million in annualized revenue when fully ramped into production

Total Revenue
$857M
Previous year: $800M
+7.2%
EPS
$1.2
Previous year: $0.81
+48.1%
Return on Invested Capital
12.9%
Economic Return
4.1%
Gross Profit
$82.9M
Previous year: $71M
+16.7%
Cash and Equivalents
$297M
Previous year: $198M
+49.5%
Free Cash Flow
$36.6M
Previous year: $21.5M
+70.1%
Total Assets
$2.29B
Previous year: $2.02B
+13.5%

Plexus

Plexus

Plexus Revenue by Segment

Plexus Revenue by Geographic Location

Forward Guidance

Plexus is guiding revenue in the range of $850 to $890 million and GAAP diluted EPS in the range of $1.05 to $1.20 for fiscal fourth quarter.

Positive Outlook

  • Aggregate demand is anticipated to remain strong in fiscal fourth quarter.
  • Expected sustained solid operating performance.
  • Well-positioned with a strong balance sheet.
  • Full use of the $350 million credit facility.
  • See a path to continued strength in operating performance throughout fiscal 2021.

Challenges Ahead

  • Expect continued end market volatility.
  • Known constraints with the global supply chain.
  • Workforce challenges that could occur due to COVID-19.
  • COVID-related demand to moderate in advance of the anticipated benefit of growth from new program ramps later in the year.
  • Guidance assumes no large scale closures of facilities due to COVID-19.

Revenue & Expenses

Visualization of income flow from segment revenue to net income