Plexus (PLXS) Down 11.4% Since Last Earnings Report: Can It Rebound?

A month has gone by since the last earnings report for Plexus (PLXS). Shares have lost about 11.4% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Plexus due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.Plexus' Q4 Earnings Beat EstimatesPlexus reported fourth-quarter fiscal 2025 adjusted earnings per share (EPS) of $2.14 compared with the year-ago quarter’s earnings of $1.85. The figure beat the Zacks Consensus Estimate of $1.84 per share. Management expected non-GAAP EPS to be in the band of $1.82-$1.97. Revenues of $1.058 billion were up nearly 0.7% year over year and topped the Zacks Consensus Estimate of $1.046 billion. Management expected revenues to be between $1.025 billion and $1.065 billion.In the reported quarter, revenues from the Americas increased 9.4% to $336 million. Revenues from EMEA and Asia-Pacific declined 7% and 2.1%, respectively.In the fiscal fourth quarter, Plexus announced 28 manufacturing program wins, which are estimated to contribute $274 million in annualized revenues once fully ramped into production.For fiscal 2025, Plexus reported revenues of $4.03 billion (up 1.8% from fiscal 2024) and adjusted EPS of $7.43 (up 29.9%). Management highlighted that strong fiscal 2025 results and new program wins across solutions position it for achieving revenue growth toward the 9% to 12% target for fiscal 2026.Looking at Market Sector DetailIndustrial sector’s revenues were up 2% year over year to $461 million, driven by strength in broadband, semicap and energy. This segment contributed 44% to total revenues. The company expected the segment to register a low single-digit increase in revenues. Management anticipates current-quarter revenues to be affected by weakness due to seasonality and muted near-term demand.Healthcare/Life Sciences’ revenues were up 2.2% from the year-ago quarter’s levels to $424 million. This contributed 40% to total revenues. The company expected the Healthcare Life Sciences sector’s revenues to grow in low single digits. Management anticipates the current quarter to gain from ongoing program ramps and some demand strength.Revenues from Aerospace/Defense fell 6% year over year to $173 million due to program ramp timings. This segment contributed 16% to total revenues. Management guided for flat revenue growth for this sector. For the fiscal first quarter, Plexus expects growth from program ramps in commercial aerospace, defense and unmanned aircrafts.Our estimates for revenues from the Industrial, Healthcare/Life Sciences and Aerospace/Defense were $429.2 million, $433.7 million and $183.2 million, respectively.The company’s top 10 customers accounted for 49% of net revenues in the fiscal fourth quarter.Operating DetailsGross profit on a GAAP basis decreased 2.9% year over year to $104.8 million. Gross margin was 9.9%, down from 10.3% reported in the year-ago quarter.Selling and administrative expenses declined 4.4% from the year-ago quarter’s actuals to $51.7 million.Adjusted operating margin contracted 40 basis points to 5.8%.Cash Flow & Balance Sheet PositionAs of Sept. 27, 2025, Plexus had cash & cash equivalents worth $307 million compared with $237.6 million as of June 28.Plexus had long-term debt and finance lease obligations, net of the current portion of $91.9 million as of Sept. 27, 2025, compared with $92.2 million as of June 28.For the quarter under review, cash flows from operations were $132 million. Plexus reported a free cash flow of $97.2 million. For fiscal 2025, free cash flow came in at $154 million.The company repurchased $21.5 million worth of shares at an average price of $134.07 per share under its repurchase program. For fiscal 2025, Plexus repurchases $65 million worth of shares. Out of the $100 million authorization, $85 million remains available.Q1 OutlookFor first-quarter fiscal 2026, revenues are anticipated to be between $1.05 billion and $1.09 billion.Non-GAAP operating margin is expected to be between 5.6% and 6%. Non-GAAP EPS is expected to be in the band of $1.66-$1.81.How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates revision.VGM ScoresCurrently, Plexus has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a score of B on the value side, putting it in the top 40% for this investment strategy.Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Plexus has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Plexus Corp. (PLXS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks