Plexus Profit Tops Estimates - Update

(RTTNews) - Contract electronics maker Plexus Corp. (PLXS), Wednesday reported an increase in first-quarter profit as revenues grew, partly offset by flat margins. While earnings for the quarter topped Wall Street estimates, revenues fell short of expectations.

Wisconsin-based Plexus posted quarterly net income of $17.7 million or $0.51 per share, compared with $16.6 million or $0.47 per share last year.

Excluding items, adjusted earnings for the quarter were $21 million or $0.61 per share.

On average, 11 analysts polled by Thomson Reuters expected earnings of $0.61 per share for the quarter. Analysts' estimates typically exclude special items.

Sales for the first quarter grew to $534 million from $530.5 million last year. Analysts estimated sales of $536 million for the quarter.

Both gross margin and operating margin for the quarter were flat with last year, the company said in a statement.

During the quarter, Plexus won 29 new programs in its Manufacturing Solutions group and anticipates these wins to generate about $205 million in annualized revenue when fully ramped into production.

Plexus in the past had struggled with weak economic conditions restrain and suffered a setback due to its disengagement with Juniper Networks.

Looking ahead to the second quarter, Plexus expect earnings in the range of $0.57 to $0.63 per share, excluding any restructuring charges and including about $0.10 per share of stock-based compensation expense. Sales are expected in the range of $535 million to $565 million. Analysts currently expect earnings of $0.61 per share on sales of $549.4 million for the second quarter.

Plexus stock closed Wednesday at $43.14, up $1.05 or 2.49%, on a volume of 500 thousand shares on the Nasdaq. In after hours, the stock dropped $0.25 or 0.58%.