Plexus Corp PLXS reported first-quarter fiscal 2024 adjusted earnings per share (EPS) of $1.04, which decreased 30.2% year over year. The Zacks Consensus Estimate was pegged at $1.05 per share.

Revenues of $983 million decreased 10.2% year over year. The top-line performance was affected mainly due to weakness in the Healthcare/Life Sciences and Industrial sectors. Revenues missed the Zacks Consensus Estimate by 1%.

In the reported quarter, revenues from Asia-Pacific and America declined 14% and 14.4%, respectively. Revenues from Europe, the Middle East and Africa rose 37.1%.

Plexus Corp. Price, Consensus and EPS Surprise

Plexus Corp. price-consensus-eps-surprise-chart | Plexus Corp. Quote

In the fiscal first quarter, Plexus won 30 manufacturing contracts worth $261 million in annualized revenues when fully ramped into production. Trailing four-quarter manufacturing wins totaled more than $1.05 billion in annualized revenues. Plexus also noted that a funnel of qualified manufacturing opportunities now amounted to $4 billion, which increased from $331 million in the fiscal fourth quarter.

Following the announcement, the company’s shares were down 5.2% in the pre-market trading on Jan 25, 2024. The stock has gained 5.2% in the past year compared with the sub-industry’s growth of 40.8%.

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Market Sector Details

Industrial revenues were down 7.8% year over year to $435 million, contributing 44% to total revenues.

Healthcare/Life Sciences’ revenues declined 21.9% from the year-ago quarter’s levels to $381 million, contributing 39% to total revenues.

Revenues from Aerospace/Defense increased 24.6% year over year to $167 million, contributing 17% to total revenues.

The company’s top 10 customers accounted for 48% of net revenues in the fiscal first quarter.

Operating Details

Gross profit on a GAAP basis decreased 12.9% year over year to $88.1 million. Gross margin contracted 30 basis points (bps) to 9%.

Selling and administrative expenses decreased 2.1% from the year-ago quarter to $43 million.

PLXS reported an adjusted operating income of $45.1 million, down 21.3% year over year. Adjusted operating margin contracted 60 bps to 4.6%.

Balance Sheet & Cash Flow

As of Dec 30, 2023, Plexus had cash & cash equivalents worth $231.9 million compared with $256.2 million as of Sep 30, 2023.

As of Dec 30, 2023, PLXS had long-term debt and finance lease obligations, net of the current portion of $192.1 million compared with $190.8 million as of Sep 30, 2023.

In the quarter under review, the cash outflow from operations was $3 million. Plexus reported a free cash outflow of $31.7 million.