The 10-second takeaway
For the quarter ended June 29 (Q3), Plexus beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank. GAAP earnings per share grew.
Gross margins increased, operating margins contracted, net margins grew.
Plexus notched revenue of $571.9 million. The eight analysts polled by S&P Capital IQ foresaw sales of $565.0 million on the same basis. GAAP reported sales were 6.1% lower than the prior-year quarter's $608.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.68. The nine earnings estimates compiled by S&P Capital IQ predicted $0.58 per share. GAAP EPS of $0.68 for Q3 were 3.0% higher than the prior-year quarter's $0.66 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 9.7%, 30 basis points better than the prior-year quarter. Operating margin was 4.4%, 10 basis points worse than the prior-year quarter. Net margin was 4.1%, 20 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $554.5 million. On the bottom line, the average EPS estimate is $0.57.
Next year's average estimate for revenue is $2.21 billion. The average EPS estimate is $2.13.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 349 members out of 370 rating the stock outperform, and 21 members rating it underperform. Among 89 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 85 give Plexus a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Plexus is hold, with an average price target of $27.43.
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