Plxs Investor Relations Financial Performance and Earnings Growth Review

Let's dive into the financial performance and earnings growth review of PLXS, a company that has consistently demonstrated its ability to adapt and thrive in a rapidly changing market.

PLXS has delivered impressive revenue growth, with a compound annual growth rate (CAGR) of 10.5% over the past five years. This is a testament to the company's commitment to innovation and its ability to capitalize on emerging trends.

The company's gross margin has also shown a steady increase, rising from 58.2% in 2018 to 61.2% in 2022. This improvement in profitability is a direct result of PLXS's focus on operational efficiency and cost management.

PLXS's net income has more than doubled over the past five years, growing from $54.4 million in 2018 to $123.5 million in 2022. This significant increase in earnings is a clear indication of the company's financial health and stability.

Plexus Corp is headquartered in Neenah, Wisconsin, and has a diverse clientele across various sectors such as healthcare, aerospace, and communications.

The company's revenue stream is fueled by its ability to manufacture high-complexity and low to medium-volume products, which often come with higher margins. This allows Plexus to address the unique demands of industries where precision and reliability are crucial.

Plexus has a robust operational strategy and adapts to the ever-evolving landscape of global technology manufacturing. The company's management team engages in a fireside chat session at the Raymond James 46th Annual Institutional Investors Conference.

Plexus Corp reported fiscal Q1 2025 results with revenue of $976 million, GAAP operating margin of 4.8%, and GAAP diluted EPS of $1.34. The company generated $27 million in free cash flow, marking their best Q1 performance in five years.

Plexus guides revenue between $960 million to $1.00 billion for Q2 2025, with non-GAAP operating margin of 5.3% to 5.7% and non-GAAP EPS of $1.46 to $1.61.

Plexus reported fiscal Q1 2025 results with revenue of $976 million, exceeding expectations.

The company generated $27 million in free cash flow, marking their best Q1 performance in five years.

Plexus won 30 manufacturing programs worth $212 million in annualized revenue, demonstrating their ability to secure new business.

Their strong cash cycle of 68 days and 13.8% return on invested capital also indicate efficient use of resources.

The company repurchased $12.8 million of shares and reduced borrowing by $37 million, showing a commitment to shareholder value.

Plexus guides revenue between $960 million to $1.00 billion for Q2 2025, with non-GAAP operating margin of 5.3% to 5.7% and non-GAAP EPS of $1.46 to $1.61.

In fiscal third quarter 2024, Plexus generated $114 million in free cash flow, a significant amount compared to their Q1 2025 performance.

ROE is a measure of a company's profitability. Companies with a higher return on equity tend to have higher earnings growth potential.

A company's profit retention is also a key factor in determining earnings growth. Companies that retain more of their profits are more likely to see higher earnings growth.

Plexus is a great example of this, with an 11% ROE and decent growth of 8.1% over the past five years.

The company's ROE is also comparable to the industry average of 11%. This suggests that Plexus is managing its finances effectively.

Companies with both high ROE and profit retention are usually the ones that see higher growth rates.

Plexus doesn't pay any dividend currently, which means it has been reinvesting all of its profits into the business.

This reinvestment strategy definitely contributes to the decent earnings growth number of 8.1% seen over the past five years by Plexus.

The company's strong cash cycle of 68 days also indicates efficient use of its profits, allowing it to maintain a healthy cash position.

Plexus generated $27 million in free cash flow in Q1 2025, marking its best Q1 performance in five years, which is a testament to its ability to effectively manage its finances.

The company's 13.8% return on invested capital is also a good indication of its efficient use of profits, as it shows that Plexus is able to generate a significant return on its investments.

Plexus Corp. (NASDAQ: PLXS) reported fiscal third quarter 2024 results with revenue of $961 million.

The company generated $114 million in free cash flow, which is a significant improvement compared to previous quarters.

Plexus won 35 manufacturing programs worth $279 million in annualized revenue, demonstrating its strong market presence and growth potential.

For Q4 2024, Plexus expects revenue between $990 million to $1.03 billion with non-GAAP EPS of $1.50 to $1.65.

This guidance suggests that the company is anticipating sustained revenue growth momentum into fiscal 2025, driven by Aerospace/Defense strength, Healthcare/Life Sciences growth, and improved demand in semiconductor and broadband communications sectors.

Plexus' return on invested capital (ROE) is 11%, which is similar to the average industry ROE, indicating that the company is making efficient use of its profits.

The company's decent growth of 8.1% over the past five years is likely a result of its ability to reinvest profits into the business, as it doesn't pay any dividend currently.

Plexus' earnings growth is linked to its return on equity (ROE) and profit retention. Companies with higher ROE and profit retention tend to have higher growth rates.

Plexus has a decent growth rate of 8.1% over the past five years, which is likely due to its 11% ROE being similar to the industry average.

The company reinvests all its profits into the business, which contributes to its decent earnings growth number. This is because it doesn't pay any dividend currently.

Plexus' earnings are expected to climb by 16% in the coming year, outpacing the market's 10% growth prediction.

Plexus' ROE looks acceptable, and it's actually similar to the average industry ROE of 11%. This similarity likely contributed to the company's decent earnings growth of 8.1% over the past five years.

The company's earnings growth is a notable aspect of its financial performance. A side-by-side comparison with the industry reveals that Plexus' ROE is on par with the average industry ROE.

Plexus' earnings growth may not be spectacular, but it's a steady and consistent performance that's worth noting.

Plexus has been growing steadily, with a 26% increase in EPS over the last three years.

The company's revenue has also been expanding, with wins in 30 manufacturing programs worth $212 million in annualized revenue in Q1 2025.

Plexus expects to continue growing, with a guidance of 16% EPS increase in the coming year, outpacing the market's predicted 10% growth.

This growth is driven by revenue expansion across all market sectors, including Aerospace/Defense, Healthcare/Life Sciences, and improved demand in semiconductor and broadband communications sectors.

The company's strong cash cycle of 68 days and 13.8% return on invested capital also indicate a healthy financial position.

Plexus' ability to generate free cash flow, such as $27 million in Q1 2025, is a sign of its financial stability and ability to invest in growth initiatives.

The company's focus on reinvesting profits into the business, rather than paying dividends, has contributed to its decent earnings growth.

Plexus' guidance for Q2 2025, with revenue between $960 million to $1.00 billion, suggests a continued growth trajectory.

This growth momentum is expected to be sustained into fiscal 2025, driven by the company's diversified revenue streams.

As a long-term investor, it's essential to stay informed about Plexus Corp's stock performance. Plexus Corp's stock is listed on the NASDAQ stock exchange under the ticker symbol PLXS.

The company's stock has shown steady growth over the years. In 2020, Plexus Corp's revenue reached $2.3 billion.

Plexus Corp has a strong financial position, with a debt-to-equity ratio of 0.04. This indicates a low level of debt compared to equity.

Plexus Corp's stock has a beta of 1.23, indicating a higher level of volatility compared to the overall market. This means that the stock's value can fluctuate more rapidly than the overall market.