Plexus (PLXS) has reported a 74.51 percent jump in profit for the quarter ended Apr. 01, 2017. The company has earned $29.30 million, or $0.84 a share in the quarter, compared with $16.79 million, or $0.50 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $29.30 million, or $0.84 a share compared with $18.70 million or $0.55 a share, a year ago. Revenue during the quarter went down marginally by 2.31 percent to $604.35 million from $618.66 million in the previous year period. Gross margin for the quarter expanded 195 basis points over the previous year period to 10.56 percent. Total expenses were 94.61 percent of quarterly revenues, down from 96.23 percent for the same period last year. This has led to an improvement of 162 basis points in operating margin to 5.39 percent.
Operating income for the quarter was $32.57 million, compared with $23.35 million in the previous year period.
However, the adjusted operating income for the quarter stood at $32.57 million compared to $25.26 million in the prior year period. At the same time, adjusted operating margin improved 131 basis points in the quarter to 5.39 percent from 4.08 percent in the last year period.
Todd Kelsey, president and chief executive officer, commented, "We delivered GAAP diluted EPS of $0.84, $0.05 above the top end of our guidance range. Robust productivity improvements, favorable product mix, and exceptional engineering solutions performance all contributed. We delivered solid earnings despite weaker than anticipated sales within our Communications market sector, resulting in revenue of $604 million."
For the third-quarter 2017, Plexus expects revenue to be in the range of $595 million to $625 million. The company expects operating income to grow in the range of 4.80 percent to 5.20 percent. It company projects diluted earnings per share to be in the range of $0.68 to $0.76.
Working capital increases marginally
Plexus has recorded an increase in the working capital over the last year. It stood at $838.88 million as at Apr. 01, 2017, up 3.96 percent or $31.93 million from $806.94 million on Apr. 02, 2016. Current ratio was at 2.31 as on Apr. 01, 2017, down from 2.52 on Apr. 02, 2016. Cash conversion cycle (CCC) has decreased to 39 days for the quarter from 80 days for the last year period. Days sales outstanding were almost stable at 51 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 51 days for the quarter compared with 90 days for the previous year period. At the same time, days payable outstanding went up to 63 days for the quarter from 60 for the same period last year.
Debt moves up
Plexus has witnessed an increase in total debt over the last one year. It stood at $278.26 million as on Apr. 01, 2017, up 6.26 percent or $16.40 million from $261.86 million on Apr. 02, 2016. Total debt was 15.42 percent of total assets as on Apr. 01, 2017, compared with 15.55 percent on Apr. 02, 2016. Debt to equity ratio was at 0.29 as on Apr. 01, 2017, down from 0.30 as on Apr. 02, 2016. Interest coverage ratio improved to 9.98 for the quarter from 6.35 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
