Plexus (PLXS) to report earnings tomorrow: here is what to expect

What happened

Plexus, an electronic manufacturing services company, will report results Wednesday after the market closes. Last quarter it reported revenue of $1.30 billion, up 28.1% year on year, and beat analysts' revenue expectations. Analysts expect revenue to grow 28.5% this quarter.

Confirmed

Global impact / market context

Plexus makes electronics for other companies, so its sales show whether demand for manufactured technology products is holding up. A 28.5% expected sales rise, after last year's flat quarter, would signal a sharp rebound from a weak comparison period.

Analyst inference

Peers Knowles and Jabil already reported strong sales growth, beating estimates by 6.9% and 9.8%. That suggests demand across the electronic components and manufacturing segment is healthy, though Plexus has missed revenue estimates several times in the past two years.

Analyst inference

What to watch

1. Plexus reports results Wednesday after the bell, and investors will compare revenue with the 28.5% year-on-year growth analysts expect, which means the gain in sales versus a year earlier. Confirmed
2. Watch whether Plexus can avoid another revenue miss. It has missed Wall Street's revenue estimates multiple times over the last two years, so an in-line result would matter for how investors judge the company. Analyst inference
3. Watch how the company guides for next quarter, since last quarter's outlook beat analysts' expectations, which means guidance is management's own forecast for upcoming sales and profit. Proposed

Evidence

• stockstory.org