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Jul 01, 2023

Plexus Q3 2023 Earnings Report

Plexus reported solid Q3 2023 results with revenue of $1.02 billion and non-GAAP EPS of $1.32.

Key Takeaways

Plexus announced its fiscal third quarter results, reporting revenue of $1.02 billion, a GAAP operating margin of 2.8%, and a GAAP diluted EPS of $0.56. The company's non-GAAP operating margin was 5.0% and non-GAAP diluted EPS was $1.32. They also initiated fiscal fourth quarter 2023 revenue guidance of $1.00 billion to $1.04 billion with GAAP diluted EPS of $1.18 to $1.36.

Plexus reported fiscal third quarter revenue of $1.02 billion.

GAAP operating margin was 2.8% and GAAP diluted EPS was $0.56, including restructuring and other charges and stock-based compensation expense.

Non-GAAP operating margin was 5.0% and non-GAAP diluted EPS was $1.32, including stock-based compensation expense.

The company won 30 manufacturing programs during the quarter, representing a record $321 million in annualized revenue when fully ramped into production.

Total Revenue
$1.02B
Previous year: $981M
+4.1%
EPS
$1.32
Previous year: $1.33
-0.8%
Economic Return
4.5%
Previous year: 2.2%
+104.5%
Gross Profit
$93.6M
Previous year: $93.6M
+0.0%
Cash and Equivalents
$253M
Previous year: $277M
-8.5%
Free Cash Flow
-$11.5M
Previous year: -$42M
-72.6%
Total Assets
$3.42B
Previous year: $3.2B
+6.7%

Plexus

Plexus

Plexus Revenue by Segment

Forward Guidance

Plexus is guiding fiscal fourth quarter revenue of $1.00 billion to $1.04 billion, GAAP operating margin of 4.7% to 5.2% and GAAP EPS of $1.18 to $1.36.

Positive Outlook

  • Increasingly robust commercial aerospace demand.
  • Continued new program ramps.
  • Plexus' best in class capabilities.
  • Focus on operational excellence are resonating with customers.
  • Accelerating program wins position Plexus to continue to deliver industry leading revenue growth and profitability.

Challenges Ahead

  • Incrementally weaker demand for semiconductor capital equipment.
  • Modest softening in some industrial markets.
  • Continued supply chain challenges.
  • Effect of inflationary pressures on our costs of production, profitability, and on the economic outlook of our markets.
  • The effects of shortages and delays in obtaining components as a result of economic cycles, natural disasters or otherwise.

Revenue & Expenses

Visualization of income flow from segment revenue to net income