Plexus Corp announces new $50M stock buyback plan By Investing.com

Plexus Corp (NASDAQ:), a leading provider of printed circuit boards, announced on Monday a new share repurchase program authorized by its Board of Directors. The program, set to commence following the expiration of the company’s current buyback initiative, will enable Plexus to repurchase up to $50 million of its common stock.

This strategic move allows the company to buy back shares opportunistically, without a predetermined schedule, relying on prevailing market conditions and other influential factors. The decision underscores Plexus’s commitment to utilizing its capital to enhance shareholder value, although the company has not committed to specific repurchase timelines or quantities.

The repurchase authorization reflects Plexus’s financial confidence, providing a flexible approach to managing its share capital. The company’s approach will be influenced by market dynamics, legal requirements, and financial prudence.

Plexus’s current repurchase program remains active until its designated expiration, after which the new $50 million authorization will take effect. The company’s stock is traded on the Nasdaq Global Select Market under the ticker symbol PLXS.

This announcement is based on a recent SEC filing and serves as a testament to Plexus’s ongoing efforts to strategically allocate capital and deliver value to its investors. The information provided in this article is derived from Plexus Corp’s latest SEC filing.

In other recent news, Plexus Corp reported a strong financial performance in its fiscal third quarter of 2024, surpassing revenue expectations with $961 million and generating a substantial $114 million of free cash flow.

The company also reported a non-GAAP operating margin of 5.8% and projected a revenue growth of 9-12% for fiscal 2025. In addition, Plexus Corp announced significant wins in the healthcare life sciences sector and emphasized its commitment to sustainability and community efforts.

Despite experiencing growth below expectations in the aerospace and defense sector due to supply constraints and customer design changes, the company anticipates a mid-single-digit revenue increase in the fiscal fourth quarter.

Plexus Corp also reported a robust demand in the aerospace and defense sector, expecting it to continue. However, the industrial sector, excluding communications and test and measurement, is experiencing some demand weakness.

Among the recent developments, the company’s funnel of qualified manufacturing opportunities has grown to $3.6 billion, and the free cash flow for fiscal 2024 is projected to exceed $150 million. The healthcare life sciences sector had a strong third quarter with $197 million in wins, and the company has secured over $500 million in healthcare life sciences contracts over the past four quarters.

Lastly, the company discussed the impact of AI on power opportunities related to data centers, indicating potential growth in this area.

InvestingPro Insights

Plexus Corp’s (NASDAQ:PLXS) new share repurchase program aligns with its strong financial performance and commitment to shareholder value, as evidenced by real-time data and InvestingPro Tips. With a market capitalization of $3.36 billion and a P/E ratio of 30.65, reflecting a slight adjustment to 26.17 over the last twelve months as of Q3 2024, the company shows a solid valuation stance. Despite a dip in revenue growth of -8.72% over the same period, Plexus has maintained a gross profit margin of 9.34%, indicating a degree of resilience in its operational efficiency.

InvestingPro Tips highlight the company’s high shareholder yield and the fact that three analysts have revised their earnings upwards for the upcoming period, suggesting confidence in Plexus’s future performance. While the company does not pay dividends, it has been profitable over the last twelve months, and analysts predict it will continue to be profitable this year. Moreover, Plexus has experienced a significant price uptick of 29.42% over the last six months, further reinforcing its potential for delivering shareholder returns.

For investors interested in a deeper dive, there are additional InvestingPro Tips available at https://www.investing.com/pro/PLXS, offering insights into Plexus’s financial health and market position.

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