Plexus Corp PLXS is slated to report first-quarter fiscal 2025 earnings on Jan. 22, after closing bell. 

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The Zacks Consensus Estimate for fiscal first-quarter revenues is pegged at $983.7 million, implying a marginal gain of 0.1% from the year-ago quarter’s reported figure. The consensus mark for earnings per share (EPS) is pegged at $1.59, indicating a 52.9% year-over-year increase.  The estimate for the bottom line has improved 1 cent in the past 60 days.

For first-quarter fiscal 2025, the company expects revenues to be between $960 million and $1 billion. Non-GAAP EPS is expected to be in the range of $1.52-$1.67.

The company’s earnings beat the Zacks Consensus Estimate in three of the last four quarters and missed once, delivering an average surprise of 10.3%.

Factors at Play for PLXS

Continued demand weakness in the industrial market sector and the EMEA region remains concerning for Plexus in the near term. These factors are expected to have affected sequential revenue growth in the fiscal first quarter. Uncertainty prevailing over global macroeconomic conditions, geopolitical headwinds, customer concentration risks, stiff rivalry and supply-chain challenges remain additional concerns. 

Segment-wise, management expects Aerospace/Defense to sequentially decline in the high single digits in the fiscal first quarter, mainly due to weakness in the commercial aerospace subsector offsetting strong performance in the space subsector. 

Healthcare/Life Sciences sector is anticipated to decline in the high single digits, due to some continued inventory corrections and the pulling forward of activity in the fourth quarter of fiscal 2024. 

Revenues are expected to decline in mid-single digits for Industrial sector, owing to demand instability across several subsectors offsetting gains in the semiconductor capital equipment vertical.

Plexus Corp. Price and EPS Surprise

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

We expect revenues from Aerospace/Defense unit to be $168.4 million, up 0.8% year over year. Revenues from Healthcare/Life Sciences and Industrial sectors are expected to be $383.6 million (up 0.7% year over year) and $430.4 million (down 1% year over year).

Nonetheless, Plexus’s performance is likely to have been cushioned by new manufacturing program wins. It ended fiscal 2024 with manufacturing program wins exceeding $1 billion, including $568 million from Healthcare/Life Sciences sector. The funnel of qualified manufacturing opportunities is pegged at $3.5 billion, indicating a strong pipeline for growth. The company expects this positive demand trend to be a key catalyst in the quarter’s performance.

What Does Our Model Say for PLXS

Our proven model does not conclusively predict an earnings beat for Plexus this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, this is not the case here.

Earnings ESP: Plexus has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Plexus currently carries a Zacks Rank #3.

Stocks to Consider

Here are some stocks you may consider, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

V.F. Corporation VFC currently has an Earnings ESP of +4.30% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here. 

VFC is scheduled to report quarterly earnings on Jan. 29. The Zacks Consensus Estimate for VFC’s to-be-reported quarter’s earnings and revenues is pegged at 34 cents per share and $2.75 billion, respectively. Shares of VFC have gained 43.6% in the past year.

Packaging Corporation of America PKG presently has an Earnings ESP of +0.96% and a Zacks Rank #2. PKG is scheduled to report quarterly numbers on Jan. 28. The Zacks Consensus Estimate for PKG’s to-be-reported quarter’s earnings and revenues is pegged at $2.51 per share and $2.13 billion, respectively. Shares of PKG have risen 44% in the past year.

American Airlines Group Inc. AAL has an Earnings ESP of +3.99% and a Zacks Rank #1 at present. AAL is scheduled to report quarterly figures on Jan. 23. The Zacks Consensus Estimate for AAL’s to-be-reported quarter’s earnings and revenues is pegged at 64 cents per share and $13.42 billion, respectively. Shares of AAL have increased 34.2% in the past year.

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