Plexus Earnings: Here’s Why Investors are Buying Shares Now

Plexus Corp. (NASDAQ:PLXS) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 5.33%.

Plexus Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 3.03% to $0.68 in the quarter versus EPS of $0.66 in the year-earlier quarter.

Revenue: Decreased 6.06% to $571.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Plexus Corp. reported adjusted EPS income of $0.68 per share. By that measure, the company beat the mean analyst estimate of $0.58. It beat the average revenue estimate of $564.99 million.

Quoting Management: Dean Foate, Chairman, President and CEO, commented, “Fiscal third quarter revenues were up 3% sequentially to $572 million, above the mid-point of our revenue guidance range on better than anticipated performance in our Networking/Communications and Healthcare/Life Sciences sectors. Diluted EPS was $0.68, above our guidance range as a consequence of a discrete tax item, operating performance initiatives and revenue mix. The combination of stronger operating performance and better working capital management delivered return on invested capital of 13.2%, 120 basis points above our weighted average cost of capital. Consistent with previous disclosures regarding the disengagement of Juniper Networks, we completed production of Juniper products this quarter. At Juniper`s request, we are holding certain products and material in buffer stock and anticipate final shipments and the resolution of all inventory during our fiscal fourth quarter of 2013. We expect no revenue from Juniper in fiscal 2014.”

Key Stats (on next page)…

Revenue increased 2.52% from $557.82 million in the previous quarter. EPS increased 30.77% from $0.52 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.54 to a profit $0.57. For the current year, the average estimate has moved up from a profit of $2.12 to a profit of $2.13 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)