NEENAH, WI - Plexus Corp . (NASDAQ: NASDAQ:PLXS) has reported its fiscal second quarter results, surpassing analyst expectations for adjusted earnings per share (EPS) but providing guidance for the next quarter that falls short of consensus estimates.
The company announced an adjusted EPS of $0.94 for the quarter, which was $0.07 higher than the analyst estimate of $0.87. Revenue for the quarter was also above expectations, coming in at $966.9 million compared to the consensus estimate of $950.75 million.
Despite the positive performance in the second quarter, Plexus provided guidance for the third quarter of 2024 that was below analyst expectations. The company anticipates an adjusted EPS between $0.80 and $0.95, which is lower than the consensus estimate of $1.09. Additionally, the revenue guidance for the third quarter is set between $960 million and $1 billion, compared to the expected $1.022 billion.
Todd Kelsey, Chief Executive Officer, remarked on the company's achievements, "Plexus delivered fiscal second quarter revenue of $967 million and non-GAAP EPS of $0.94, each of which met the top end of our guidance. Non-GAAP operating margin of 4.2% met our expectation entering the quarter. In addition, we generated free cash flow of $65 million, a particularly strong result." Kelsey attributed the successful quarter to the company's differentiated service offering and superior execution, which led to winning 32 new manufacturing programs worth $255 million in annualized revenue.
Looking forward, Plexus anticipates a strong finish to fiscal 2024 with expected expansion in revenue and non-GAAP operating margin each quarter, as well as robust free cash flow generation. This optimistic outlook is supported by robust demand within the Aerospace and Defense market sector, recovering semiconductor capital equipment demand, and new program ramps.
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