Plexus Corp (PLXS, Financial) announced its financial results for the fiscal first quarter ending December 28, 2024, and provided guidance for the fiscal second quarter ending March 29, 2025. The company reported a revenue of $976 million, a GAAP operating margin of 4.8%, and a GAAP diluted EPS of $1.34. Non-GAAP results showed an operating margin of 6.0% and diluted EPS of $1.73, excluding stock-based compensation and restructuring charges. For the second quarter, Plexus projects revenue between $960 million and $1 billion, with a GAAP diluted EPS of $1.22 to $1.37.
Positive Highlights
- Fiscal Q1 2025 revenue reached $976 million, aligning with expectations.
- Non-GAAP operating margin was 6.0%, near the high end of guidance.
- Non-GAAP EPS of $1.73 exceeded guidance.
- Free cash flow generation of $27 million, the best in five years.
- 30 new manufacturing program wins, representing $212 million in annualized revenue.
Negative Highlights
- GAAP operating margin slightly lower at 4.8% compared to previous quarters.
- Revenue decreased from $1.05 billion in the previous quarter.
- Stock-based compensation and restructuring charges impacted GAAP results.
Financial Analyst Perspective
From a financial analyst's viewpoint, Plexus Corp's Q1 2025 results demonstrate strong operational performance, with non-GAAP metrics surpassing expectations. The company's ability to maintain a high non-GAAP operating margin and exceed EPS guidance is indicative of effective cost management and operational efficiency. The guidance for Q2 suggests a stable revenue outlook, although the slight decrease in GAAP operating margin could be a point of concern. The company's focus on free cash flow and return on invested capital highlights its commitment to shareholder value.
Market Research Analyst Perspective
As a market research analyst, Plexus Corp's performance in Q1 2025 reflects its strategic positioning in key sectors such as Healthcare/Life Sciences and Aerospace/Defense. The company's success in securing new manufacturing programs and its strong engineering solutions pipeline are positive indicators of future growth. The diversification of engineering opportunities suggests a robust market demand and potential for expansion. However, the competitive landscape and economic conditions will be critical factors to monitor in the coming quarters.
Frequently Asked Questions (FAQ)
Q: What was Plexus Corp's revenue for Q1 2025?
A: Plexus Corp reported a revenue of $976 million for Q1 2025.
Q: What is the guidance for Q2 2025 revenue?
A: Plexus Corp has provided a revenue guidance of $960 million to $1 billion for Q2 2025.
Q: How did Plexus Corp perform in terms of free cash flow?
A: Plexus Corp generated $27 million in free cash flow during Q1 2025, marking its best performance in five years.
Q: What are the expected GAAP and non-GAAP EPS for Q2 2025?
A: The expected GAAP EPS for Q2 2025 is $1.22 to $1.37, while the non-GAAP EPS is projected to be $1.46 to $1.61.
Read the original press release here.
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