Plexus Corp. (PLXS) just hit a new 52-week high above $35 after the company reported better than expected first-quarter results on Jan 20.
Company Description
Plexus, Corp., with its subsidiaries, provides electronic manufacturing services to original equipment manufacturers and other technology companies both domestically and internationally. The company was founded in 1979 and has a market cap of $1.37 billion.
Fourth-Quarter Results
Sales were up 9% from last year to $430 million. Earnings also came in strong at 39 cents, 5 cents ahead of the Zacks Consensus Estimate. Plexus has been a consistent producer over the last year, beating in all four quarters by an average of 6 cents, or 23%.
The company noted that its results were helped by a strong performance from its Wireline/Networking segment, where sales were up 20% from last year to $202 million. Plexus was also helped by margin improvements, with gross and operating margins coming in at 10.3% and 4.7% respectively, ahead of expectations.
The company was optimistic on its future, with CEO Dick Foate saying that “Our current expectation is that our second fiscal quarter will be exceptional. Improving end-market conditions in combination with new business wins that ramp during the quarter should result in strong revenue growth and earnings leverage.”
Estimates Jump
The optimism sent estimates higher, with the current year adding 42 cents to $1.92. The next-year estimate is up 23 cents to $2.32, a solid 21% growth projection.
Valuation Conversation
Shares of PLXS still look reasonably valued, trading with a forward P/E multiple of 18X, a slight premium to the overall market with the nice growth projection to boot.
The Chart
PLXS just hit another 52-week high as shares continue to trend higher on the good quarter and optimistic outlook. Take a look at the nice move below.
Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Surprise Trader Service. Zacks Investment Research
