Plexus Gearing Up to Report Q1 Earnings: What's in the Cards?

Plexus Corp PLXS is slated to report first-quarter fiscal 2025 earnings on Jan. 22, after closing bell. Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.The Zacks Consensus Estimate for fiscal first-quarter revenues is pegged at $983.7 million, implying a marginal gain of 0.1% from the year-ago quarter’s reported figure. The consensus mark for earnings per share (EPS) is pegged at $1.59, indicating a 52.9% year-over-year increase.  The estimate for the bottom line has improved 1 cent in the past 60 days.For first-quarter fiscal 2025, the company expects revenues to be between $960 million and $1 billion. Non-GAAP EPS is expected to be in the range of $1.52-$1.67.The company’s earnings beat the Zacks Consensus Estimate in three of the last four quarters and missed once, delivering an average surprise of 10.3%.Factors at Play for PLXSContinued demand weakness in the industrial market sector and the EMEA region remains concerning for Plexus in the near term. These factors are expected to have affected sequential revenue growth in the fiscal first quarter. Uncertainty prevailing over global macroeconomic conditions, geopolitical headwinds, customer concentration risks, stiff rivalry and supply-chain challenges remain additional concerns. Segment-wise, management expects Aerospace/Defense to sequentially decline in the high single digits in the fiscal first quarter, mainly due to weakness in the commercial aerospace subsector offsetting strong performance in the space subsector. Healthcare/Life Sciences sector is anticipated to decline in the high single digits, due to some continued inventory corrections and the pulling forward of activity in the fourth quarter of fiscal 2024. Revenues are expected to decline in mid-single digits for Industrial sector, owing to demand instability across several subsectors offsetting gains in the semiconductor capital equipment vertical.Plexus Corp. Price and EPS Surprise Plexus Corp. price-eps-surprise | Plexus Corp. QuoteWe expect revenues from Aerospace/Defense unit to be $168.4 million, up 0.8% year over year. Revenues from Healthcare/Life Sciences and Industrial sectors are expected to be $383.6 million (up 0.7% year over year) and $430.4 million (down 1% year over year).Nonetheless, Plexus’s performance is likely to have been cushioned by new manufacturing program wins. It ended fiscal 2024 with manufacturing program wins exceeding $1 billion, including $568 million from Healthcare/Life Sciences sector. The funnel of qualified manufacturing opportunities is pegged at $3.5 billion, indicating a strong pipeline for growth. The company expects this positive demand trend to be a key catalyst in the quarter’s performance.What Does Our Model Say for PLXSOur proven model does not conclusively predict an earnings beat for Plexus this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, this is not the case here.Earnings ESP: Plexus has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Zacks Rank: Plexus currently carries a Zacks Rank #3.Stocks to ConsiderHere are some stocks you may consider, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.V.F. Corporation VFC currently has an Earnings ESP of +4.30% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here. VFC is scheduled to report quarterly earnings on Jan. 29. The Zacks Consensus Estimate for VFC’s to-be-reported quarter’s earnings and revenues is pegged at 34 cents per share and $2.75 billion, respectively. Shares of VFC have gained 43.6% in the past year.Packaging Corporation of America PKG presently has an Earnings ESP of +0.96% and a Zacks Rank #2. PKG is scheduled to report quarterly numbers on Jan. 28. The Zacks Consensus Estimate for PKG’s to-be-reported quarter’s earnings and revenues is pegged at $2.51 per share and $2.13 billion, respectively. Shares of PKG have risen 44% in the past year.American Airlines Group Inc. AAL has an Earnings ESP of +3.99% and a Zacks Rank #1 at present. AAL is scheduled to report quarterly figures on Jan. 23. The Zacks Consensus Estimate for AAL’s to-be-reported quarter’s earnings and revenues is pegged at 64 cents per share and $13.42 billion, respectively. Shares of AAL have increased 34.2% in the past year.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.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 V.F. Corporation (VFC): Free Stock Analysis Report Plexus Corp. (PLXS): Free Stock Analysis Report Packaging Corporation of America (PKG): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks