The following is a summary of the Plexus Corporation (PLXS) Q3 2024 Earnings Call Transcript:
Financial Performance:
Plexus Corporation announced Q3 revenue of $1.05 billion, surpassing guidance.
Achieved non-GAAP operating margin of 6.2%, exceeding the expected range of 5.6% to 6.0%.
Free cash flow reached a record high of $194 million for the quarter, pushing annual free cash flow to a historical best of $341 million.Non-GAAP EPS was $1.85, also above the forecasted range.
Business Progress:
Won 26 manufacturing programs in the quarter, intending annual revenue ramp-up of $230 million.
Total program wins for fiscal 2024 exceeded $1 billion, with $568 million in the healthcare life sciences sector alone.
Committed to environmental and social initiatives, including a substantial reduction in waste and greenhouse gas emissions, and significant community engagements via the Plexus Community foundation.
Opportunities:
Anticipated revenue growth in fiscal 2025 from aerospace and defense sector, driven by new program ramps and market share gains.
Expect moderate growth in healthcare, life sciences, and industrial sectors, fueled by demand recovery and new program wins.
Risks:
Projected flat to single-digit decline in Q1 revenue for aerospace and defense reflecting earlier project pooling and cautious market conditions.
Continued inventory corrections in healthcare life sciences sector could dampen the expected growth rates.
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.
