Plexus Corp (NASDAQ:PLXS), a key player in the electronics manufacturing services industry, has reached an all-time high, with its shares trading at $120.32. This milestone is a testament to the company's robust performance and strategic initiatives that have been driving its growth. Over the past year, Plexus Corp has seen a significant increase in its stock value, with a 1-year change of 18.02%. This impressive growth underscores the company's strong market position and its ability to deliver consistent returns to its shareholders.
In other recent news, Plexus Corp. has demonstrated strong financial performance with significant highlights from its recent earnings and revenue results. The company reported $255 million in new program wins during its fiscal second quarter of 2024, contributing to an expected 9% to 12% revenue compound annual growth rate (CAGR) in the coming years. Plexus Corp. anticipates achieving a 5.5% GAAP operating margin by fiscal 2025 and reported generating $65 million in free cash flow during the quarter.
For the upcoming third quarter, the company projects revenues of $960 million to $1 billion, alongside a non-GAAP operating margin between 5.2% and 5.6%. Analyst firm Benchmark has raised the price target for Plexus Corp shares to $120 from the previous $110, maintaining a "Buy" rating, following a site visit to Plexus' Wisconsin operations which increased confidence in the company's financial trajectory.
These recent developments reflect Plexus' operational strengths, including the complexity of their products, technological innovation, and a corporate culture focused on quality, customer success, and sustainability. Despite decreases in qualified manufacturing opportunities and muted outlooks in certain sectors, the company has seen strong performance in the Healthcare/Life Sciences sector and robust demand in the Americas. In light of these developments, Plexus Corp. has emphasized its commitment to sustainability, with an annual sustainability report set to be released soon.
InvestingPro Insights
As Plexus Corp (PLXS) enjoys its position at an all-time high, recent data from InvestingPro offers a deeper dive into the company's financial health and market performance. With a market capitalization of $3.28 billion, Plexus stands as a significant player in the electronics manufacturing services industry. Its Price to Earnings (P/E) ratio currently stands at 32.42, reflecting investor confidence in the company's earnings potential. Notably, the P/E ratio adjusted for the last twelve months as of Q2 2024 is at a lower 24.98, which could indicate a more favorable valuation when considering the company's recent earnings.
InvestingPro Tips suggest that Plexus has been trading with low price volatility, which might appeal to investors looking for stability in their portfolio. Additionally, while the company suffers from weak gross profit margins of 9.18%, it has delivered strong returns over the last month (14.12%) and the last three months (22.56%), showcasing its recent market momentum. Moreover, analysts have revised their earnings upwards for the upcoming period, and they predict that Plexus will maintain profitability this year, a factor that could further bolster investor confidence.
For those interested in a comprehensive analysis and additional insights, InvestingPro offers a total of 11 tips for Plexus Corp, which can be accessed by visiting https://www.investing.com/pro/PLXS. Readers can also take advantage of a special offer using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, enhancing their investment research with valuable and actionable information.
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