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Jun 29, 2024

Plexus Q3 2024 Earnings Report

Reported fiscal third quarter results with revenue within guidance and non-GAAP operating margin and EPS exceeding guidance.

Key Takeaways

Plexus Corp. announced its fiscal third quarter 2024 financial results, with revenue of $961 million. Non-GAAP operating margin and non-GAAP EPS were 5.8% and $1.45, respectively, exceeding guidance. The company also generated free cash flow of $114 million.

Revenue of $961 million was within the guidance range.

Non-GAAP operating margin of 5.8% and non-GAAP EPS of $1.45 exceeded guidance.

Free cash flow of $114 million was generated.

Won 35 manufacturing programs during the quarter representing $279 million in annualized revenue.

Total Revenue
$961M
Previous year: $1.02B
-6.0%
EPS
$1.45
Previous year: $1.32
+9.8%
Economic Return
2.2%
Previous year: 4.5%
-51.1%
Cash Cycle
83
Gross Profit
$94.4M
Previous year: $93.6M
+0.8%
Cash and Equivalents
$270M
Previous year: $253M
+6.7%
Free Cash Flow
$114M
Previous year: -$11.5M
-1093.0%
Total Assets
$3.17B
Previous year: $3.42B
-7.3%

Plexus

Plexus

Plexus Revenue by Segment

Plexus Revenue by Geographic Location

Forward Guidance

Plexus is guiding fiscal fourth quarter revenue of $990 million to $1.03 billion, non-GAAP operating margin of 5.6% to 6.0% and non-GAAP EPS of $1.50 to $1.65.

Positive Outlook

  • Witnessing signs of strengthening demand across each of our market sectors.
  • Share gains and new program ramps further bolstering our ongoing and continued expectations for revenue growth.
  • Anticipate delivering a strong finish to our fiscal 2024, with sequential expansion in revenue.
  • Anticipate robust operating margin performance and sequential growth in EPS.
  • Expect sustained revenue growth momentum into fiscal 2025.

Challenges Ahead

  • Includes $0.36 of stock-based compensation expense in Q4F24 GAAP diluted EPS guidance.
  • The company has $19.5 million available under the existing $50.0 million authorization for share repurchases.
  • Potential effects of jurisdictional results on our taxes, tax rates, and our ability to use deferred tax assets and net operating losses.
  • The weakness of areas of the global economy.
  • The effect of changes in the pricing and margins of products.

Revenue & Expenses

Visualization of income flow from segment revenue to net income