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Jul 03, 2021

Plexus Q3 2021 Earnings Report

Announced fiscal third quarter financial results.

Key Takeaways

Plexus reported fiscal third quarter revenue of $814 million and GAAP diluted EPS of $0.95. Revenue met the high end of revised expectations. Strong business development performance continued with 31 new manufacturing programs won.

Fiscal third quarter 2021 revenue was $814 million.

GAAP diluted EPS was $0.95, including $0.04 of restructuring charges and $0.21 of stock-based compensation expense.

Won 31 manufacturing programs during the quarter representing approximately $275 million in annualized revenue when fully ramped into production.

Trailing four quarter wins total a record $1.1 billion in annualized revenue when fully ramped into production.

Total Revenue
$814M
Previous year: $857M
-5.0%
EPS
$0.99
Previous year: $1.2
-17.5%
Return on Invested Capital
15.9%
Previous year: 12.9%
+23.3%
Economic Return
7.8%
Previous year: 4.1%
+90.2%
Gross Profit
$74.1M
Previous year: $82.9M
-10.7%
Cash and Equivalents
$303M
Previous year: $297M
+2.3%
Free Cash Flow
$31.4M
Previous year: $36.6M
-14.2%
Total Assets
$2.32B
Previous year: $2.29B
+1.4%

Plexus

Plexus

Plexus Revenue by Segment

Plexus Revenue by Geographic Location

Forward Guidance

Plexus is guiding fiscal fourth quarter revenue of $875 to $915 million, GAAP operating margin of 4.8 to 5.2% and GAAP EPS of $1.13 to $1.29.

Positive Outlook

  • Expect that vaccination efforts, coupled with the productivity improvements implemented by regional leadership team, will allow Penang operations to function closer to typical levels of manufacturing output during the fiscal fourth quarter despite ongoing workforce curtailment guidelines.
  • Ongoing recovery in equipment used in elective medical procedures
  • Improving commercial aerospace market
  • Sustained program win strength inclusive of new customer engagements
  • Support of secular growth markets, including warehouse and factory automation, robotic assisted surgery and commercial space

Challenges Ahead

  • Guidance assumes that supply chain constraints and COVID-19 do not materially impact end markets or operations beyond what is already anticipated.
  • Evolving effect of COVID-19 on employees, customers, suppliers, and logistics providers, including the impact of governmental actions being taken to curtail the spread of the virus, particularly in the key geography of Malaysia.
  • Effects of shortages and delays in obtaining components as a result of economic cycles, natural disasters or otherwise
  • Risk of customer delays, changes, cancellations or forecast inaccuracies in both ongoing and new programs
  • Lack of visibility of future orders, particularly in view of changing economic conditions

Revenue & Expenses

Visualization of income flow from segment revenue to net income