•
Jul 02, 2022

Plexus Q3 2022 Earnings Report

Plexus reported record revenue and EPS, exceeding guidance

Key Takeaways

Plexus reported a strong fiscal third quarter with record revenue of $981 million, a 21% year-over-year increase, and GAAP EPS of $1.33, exceeding the guidance range. The company is positioned to deliver $1 billion in quarterly revenue in the fiscal fourth quarter, a first for the company.

Record fiscal third quarter revenue of $981 million was reported.

GAAP operating margin was 5.1% and GAAP diluted EPS was $1.33, including $0.21 of stock-based compensation expense.

47 manufacturing programs were won during the quarter, representing $201 million in annualized revenue when fully ramped into production.

The funnel of qualified manufacturing opportunities held steady at a record $3.4 billion.

Total Revenue
$981M
Previous year: $814M
+20.5%
EPS
$1.33
Previous year: $0.99
+34.3%
Return on Invested Capital
11.5%
Previous year: 15.9%
-27.7%
Economic Return
2.2%
Previous year: 7.8%
-71.8%
Cash Cycle
102
Gross Profit
$93.6M
Previous year: $74.1M
+26.4%
Cash and Equivalents
$277M
Previous year: $303M
-8.8%
Free Cash Flow
-$42M
Previous year: $31.4M
-233.7%
Total Assets
$3.2B
Previous year: $2.32B
+38.0%

Plexus

Plexus

Plexus Revenue by Segment

Plexus Revenue by Geographic Location

Forward Guidance

Plexus is guiding fiscal fourth quarter revenue of $980 million to $1.020 billion with GAAP diluted EPS of $1.19 to $1.35, including $0.22 of stock-based compensation expense.

Positive Outlook

  • Ongoing new program ramps
  • Customer demand continues to substantially outpace supply.
  • Success of ongoing new program ramps
  • Customer demand continues to substantially outpace supply.
  • Credit facility was expanded to $500 million.

Challenges Ahead

  • Macroeconomic outlook is uncertain
  • Challenging supply chain conditions remain
  • Incremental investments to support robust customer growth
  • Increased incentive compensation expense are modestly pressuring GAAP operating margin
  • GAAP EPS guidance is also impacted by greater interest and tax expense.

Revenue & Expenses

Visualization of income flow from segment revenue to net income