Plexus Profit Rises, Shares Gain 8% On Strong Outlook - Update

(RTTNews) - Plexus Corp. (PLXS) on Wednesday reported an increase in profit for the second quarter, driven largely by improved gross margins and a tax benefit, even as revenues came in flat. Earnings for the quarter were in line with Wall Street estimates, while revenues trumped expectations.

Shares of the contract electronics maker climbed eight percent in extended trade, on an upbeat outlook for the third quarter.

For the third quarter, the company expects adjusted earnings of $0.69 to $0.74 per share and revenues of $600 to $630 million. Analysts polled by Thomson Reuters currently estimate earnings of $0.67 per share on revenues of $575.57 million for the quarter. Analysts' estimates typically exclude one-time items.

Neenah, Wisconsin-based Plexus second-quarter profit rose to $18.5 million or $0.53 per share from $18.0 million or $0.52 per share last year. Adjusted earnings were $20.8 million or $0.60 per share last year. On average, 11 analysts expected earnings of $0.60 per share for the quarter.

Revenues for the quarter was $557.6 million, flat compared to last year's $557.8 million. Nine analysts on consensus estimated revenues of $552.62 million for the quarter.

Gross margin for the second quarter improved to 9.5 percent from 9.3 percent last year. The company recorded an income tax gain of $1.2 million compared to income tax expenses of $2.0 million last year.

PLXS closed Wednesday's trading at $40.28, up $0.43 or 1.08%, on the Nasdaq. The stock further gained $3.22 or 7.99% in after-hours trade.