Shares of Plantronics (NYSE:PLT) soared today, closing up 18%, after the company reported fiscal first-quarter earnings. The audio technology specialist, which now goes by Poly, crushed profit expectations.
Adjusted revenue in the fiscal first quarter declined by 22% to $361 million, which led to adjusted earnings per share of $0.33. The bottom-line result was well above the $0.02 per share in adjusted profits that analysts were modeling for. Poly makes headsets and videoconferencing products for both consumer and commercial uses, and the shift to remote work during the ongoing COVID-19 pandemic is increasing demand while adversely impacting the company's supply chain.
"We are working aggressively to fulfill elevated headset demand driven by the hybrid working trend as we navigate product shifts and supply chain challenges," interim CEO Robert Hagerty said in a statement. "We continue to make progress on the transformation necessary to achieve the objectives of the integrated company and return to profitable growth."
Poly's manufacturing plant in Mexico resumed production in May after implementing new safety processes and is now capable of operating at full capacity, but supply constraints related to components are bottlenecking production. The company said it has a backlog of approximately five weeks with handsets, down from six weeks at the end of the prior quarter. In addition to its in-house manufacturing, Poly uses third-party contract manufacturers, but those partners are in a "similar situation," Hagerty said on the conference call with analysts.
Guidance for the fiscal second quarter calls for adjusted revenue of $350 million to $390 million, with adjusted earnings per share forecast in the range of $0.25 to $0.65.