Wednesday, electronic manufacturing company Plexus Corp. (PLXS), reported lower profit for the fourth quarter, as volatile market demands lowered net sales during the period. Looking ahead, the company expects modest revenue growth in the first quarter and expects earnings to come in ahead of Street estimates.
Neenah, Wisconsin based Plexus reported that its fourth quarter net income declined to $15.05 million from $17.32 million reported for the same quarter last year.
Excluding the $2.12 million restructuring expenses incurred last year and other one-time items, non-GAAP net income was down at $15.05 million or $0.38 per share compared with $19.24 million or $0.48 per share reported in the same period last year.
On average, 10 analysts polled by Thomson Reuters expected the company to earn 31 cents per share for the quarter. Analysts' estimates typically exclude special items.
Fourth quarter net sales decreased to $392.975 million from $475.970 million last year, as demands remained "significantly volatile" during the period. Analysts expected revenue of $398.47 million for the quarter.
The company's Wireless and Industrial/Commercial sector's performance was better-than-expected, contributing 13% and 16% to revenues this year, while Wireline/Networking and Medical sectors showed lackluster net sales, making up 42% and 18% of total revenues for the quarter, noted the company.
Though Plexus spent less on operating expenses for the quarter at $23.03 million compared with $28.97 million, it was not enough to make up for the the slump in net sales, bringing down operating income to $14.79 million from $20.85 million in the year-ago period.
For the full year 2009, bottom-line hit $46.33 million or $1.17 per share, almost half of $84.14 million or $1.92 per share in 2008. Excluding items, the company earned $52.45 million or $1.32 per share compared with $85.88 million or $1.96 per share last year. Earnings came in ahead of Wall Street estimates at $1.26 per share for the full year 2009.
Revenues declined in the twelve-month period to $1.62 billion form $1.84 billion last year, however, was in line with consensus.
Looking ahead, Plexus expects modest revenue growth in first quarter of 2010 from new business wins and signs of improving customer demand. The company anticipates to generate approximately $122 million in annualized revenue from 13 new manufacturing programs won during the quarter.
Guiding its first quarter, the company expects to earn $0.31 to $0.36 per share on non-GAAP basis, including approximately $0.05 per share of stock-based compensation expense. Revenues for the period are anticipated between $405 to $430 million.
Nine analysts expect the company to earn $0.30 per shaer in the first quarter on revenues of $413.78 million.
PLXS shares closed Wednesday's regular trading at $24.09, down 5.75% or $1.47, on the Nasdaq. In after-hours, the shares lost 2.41% or 58 cents, trading at $23.51.
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