Plantronics (PLT) Tops Q3 EPS by 52c, Revenues Beat; Offers 4Q EPS Mid-Point Guidance Above Consensus, 4Q Revenue View Above Consensus

Plantronics (NYSE: PLT) reported Q3 EPS of $1.47, $0.52 better than the analyst estimate of $0.95. Revenue for the quarter came in at $488 million versus the consensus estimate of $431.98 million.

Highlights for the third quarter include:

• Poly posted record Professional Headset and Video revenues, with unit shipments more than doubling in each category year over year, reflecting the massive shift in the way work is done, where work is done, and the importance of reliable, high-fidelity connectivity.
• The Company announced the Poly Studio P Series, a new family of sophisticated prosumer video solutions, addressing the growing need for tools that allow professionals to work from anywhere, connect easily using any platform, and enjoy enterprise-grade service and support.
• The Company also announced Poly Lens Desktop App and Poly+. Poly Lens provides insights and management capabilities for voice, video, and headsets under a single pane of glass, while Poly+ is a personal device service providing 24/7 tech-support, overnight replacement, and advanced troubleshooting tools.
• Microban and Poly announced an exclusive relationship in which Microban's antimicrobial technology will be incorporated into Poly high-touch collaboration devices.
• Ongoing operational and turnaround efforts continue to show momentum and bottom-line results. Key additions have been made to the executive leadership team, including the appointments of Grant Hoffman as EVP Chief Supply Chain Officer, Gloria Loredo as Chief Transformation Officer, Lisa Bodensteiner as EVP Chief Legal and Compliance Officer and Corporate Secretary, and John Goodwin as SVP, Public Affairs.
• The Company generated $31M in operating cash flow, retired $12M of debt, and ended the quarter with $245M in cash and short-term investments, setting the stage for continued de-levering.

"We believe the end markets for professional-grade communications gear have permanently expanded, because work is no longer a place, it's what you do," said Dave Shull, Poly President and Chief Executive Officer. "In a world less dependent on being in the same room, but still demanding live interaction, the importance of pro-grade, easy-to-use technology that offers a superior remote experience is paramount. Poly is a company built on connecting people. And customers are responding because we offer superior products and services."

"We continue to operate with a sense of urgency as it relates to improving our operations," said Chuck Boynton, Executive Vice President and Chief Financial Officer. "We've taken concrete steps to control costs, make disciplined investments in new products, and balance supply chain exposures. And we're seeing that tactical execution reflected in this quarter's results. In particular, the strong profitability and cash flow we posted today allows us to accelerate de-levering, as debt reduction remains a top priority."

GUIDANCE:

Plantronics sees Q4 2021 EPS of $0.80-$1.00, versus the consensus of $0.83. Plantronics sees Q4 2021 revenue of $438-468 million, versus the consensus of $415.32 million.

For earnings history and earnings-related data on Plantronics (PLT) click here.

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