What to Expect from Plexus's Earnings

Plexus PLXS is preparing to release its quarterly earnings on Wednesday, 2024-10-23. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Plexus to report an earnings per share (EPS) of $1.56.

Plexus bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Historical Earnings Performance

In the previous earnings release, the company beat EPS by $0.15, leading to a 11.57% increase in the share price the following trading session.

Here's a look at Plexus's past performance and the resulting price change:

Plexus Share Price Analysis

Shares of Plexus were trading at $136.23 as of October 21. Over the last 52-week period, shares are up 54.79%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analysts' Take on Plexus

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Plexus.

Analysts have provided Plexus with 4 ratings, resulting in a consensus rating of Buy. The average one-year price target stands at $147.25, suggesting a potential 8.09% upside.

Comparing Ratings with Competitors

In this analysis, we delve into the analyst ratings and average 1-year price targets of IPG Photonics, TTM Technologies and Benchmark Electronics, three key industry players, offering insights into their relative performance expectations and market positioning.

• For IPG Photonics, analysts project an Buy trajectory, with an average 1-year price target of $100.0, indicating a potential 26.59% downside.
• TTM Technologies received a Buy consensus from analysts, with an average 1-year price target of $24.31, implying a potential 82.16% downside.
• Analysts currently favor an Buy trajectory for Benchmark Electronics, with an average 1-year price target of $45.5, suggesting a potential 66.6% downside.

Peer Analysis Summary

Within the peer analysis summary, vital metrics for IPG Photonics, TTM Technologies and Benchmark Electronics are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Plexus ranks in the middle among peers for revenue growth, with one peer showing positive growth. Plexus has the highest gross profit among peers. Plexus has the highest return on equity among peers.

Delving into Plexus's Background

Plexus Corp is a U.S based Electronic Manufacturing Services company that provides a range of services, from conceptualization and design to fulfilling orders and providing sustaining solutions, such as replenishment and refurbishment. The company's segments comprise AMER, APAC,ge and EMEA.

Plexus's Economic Impact: An Analysis

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Revenue Growth: Plexus's revenue growth over a period of 3 months has faced challenges. As of 30 June, 2024, the company experienced a revenue decline of approximately -5.96%. This indicates a decrease in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: Plexus's net margin is impressive, surpassing industry averages. With a net margin of 2.62%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Plexus's ROE excels beyond industry benchmarks, reaching 1.99%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Plexus's ROA stands out, surpassing industry averages. With an impressive ROA of 0.78%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Plexus's debt-to-equity ratio is below the industry average at 0.3, reflecting a lower dependency on debt financing and a more conservative financial approach.

To track all earnings releases for Plexus visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.