Plexus Corp (PLXS) Tops Q2 EPS by 5c, Revenues Beat; Offers 3Q EPS/Revenue Guidance Above Consensus

Plexus Corp (NASDAQ: PLXS) reported Q2 EPS of $0.61, $0.05 better than the analyst estimate of $0.56. Revenue for the quarter came in at $767 million versus the consensus estimate of $741.17 million.

• Revenue of $767 million for the fiscal second quarter of 2020
• GAAP diluted EPS of $0.43
• Non-GAAP adjusted diluted EPS of $0.61, excluding $0.18 per share related to restructuring activities, net of tax, as a result of the previously announced closure of our Boulder Design Center
• Initiates fiscal third quarter 2020 revenue guidance of $790 to $830 million with GAAP diluted EPS of $0.72 to $0.82, excluding unforeseen material impacts relating to COVID-19

Todd Kelsey, President and CEO, commented, “We achieved fiscal second quarter revenue of $767 million and adjusted diluted EPS of $0.61, excluding $0.18 due to the previously announced closure of our Boulder Design Center. While our results were impacted by the COVID-19 outbreak, our teams demonstrated their ability and resolve to mitigate the challenges and complexities of COVID-19. We remain committed to delivering for our customers and helping to create the products that build a better world. These include critical medical products being used by healthcare workers on the frontline of the battle against COVID‑19 and consist of: infusion pumps, portable ultrasounds, hospital bed electronics, portable patient monitors, ventilators, mobile x-ray electronics and diagnostic test systems. In addition to supporting the fight against COVID-19, Plexus continues to produce products that support the essential infrastructure needs of our communities."

Patrick Jermain, Executive Vice President and CFO, commented, “Despite the precipitous onset of COVID‑19, we delivered a return on invested capital of 11.4% in the quarter. This generated an economic return of 260 basis points above our weighted average cost of capital, creating solid shareholder value. Further, we believe that Plexus is well-positioned with a strong balance sheet as we face the future challenges presented by COVID-19. As of April 4, 2020, cash totaled $227 million while debt totaled $294 million. In addition, we have significant funding availability through our revolving credit facility should future needs arise.”

Mr. Kelsey concluded, “We are dedicated to the health and safety of our team members. As such, we continue to invest in our policies and protocols to operate in the safest manner possible. As we look forward to our fiscal third quarter, we expect to deliver revenue in the range of $790 to $830 million and GAAP diluted EPS of $0.72 to $0.82. In providing this guidance, we have taken into consideration known constraints on the global supply chain, workforce challenges, as well as the potential operational inefficiencies that could occur due to COVID-19; however, our guidance assumes no large scale closures of our facilities, or those of our suppliers or customers, due to COVID-19, nor does it assume that the COVID-19 outbreak will materially impact end markets beyond what has already occurred. We commit to providing timely and transparent updates should negative material changes to our revenue and EPS expectations occur within the quarter.”

GUIDANCE:

Plexus Corp sees Q3 2020 EPS of $0.72-$0.82, versus the consensus of $0.67. Plexus Corp sees Q3 2020 revenue of $790-830 million, versus the consensus of $763.2 million.

For earnings history and earnings-related data on Plexus Corp (PLXS) click here.

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