Plexus (PLXS) Rides On Program Wins, Rising Investments Hurt
Zacks Investment Research | Jan 23, 2018 02:20AM ET
On Jan 22, we issued an updated research report on Neenah, WI.-based Plexus Corp. (NASDAQ:PLXS) , a leading provider of electronic contract manufacturing services to original equipment manufacturers (OEMs).
Plexus recently reported first-quarter fiscal 2018 results. Revenues improved on a year-over-year basis but earnings declined. Both the top and the bottom line missed the Zacks Consensus Estimate.
The company has beaten the Zacks Consensus Estimate in three of the trailing four quarters, delivering an average positive surprise of 2.38%.
The Zacks Consensus Estimate for Plexus has moved downward in the past seven days. Earnings estimates for the second quarter decreased 10.8% to 74 cents. For 2018, the Zacks Consensus Estimate moved down 4.7% to $3.25 over the same time frame.
Notably, its shares have gained 13% in the past year, slightly underperforming the industry's 14.8% rally.
Key Factors
Plexus is gaining from a significant number of program wins. In the first quarter of fiscal 2018, Plexus won 44 new manufacturing programs worth approximately $200 million. It added over $794 million in revenues in the trailing four quarters from new wins.
The healthcare segment was driven by two large customer wins in the last quarter. Strength in semiconductor capital equipment space is also boosting the industrial segment. We believe new program wins, together with global expansion, will drive growth over the long term.
Plexus Corp. Revenue (TTM)
Long-term earnings growth rate for Broadcom, The Trade Desk and Micron Technology is estimated to be 13.8%, 25% and 10%, respectively.
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