Plexus, a company based in Neenah, Wisconsin, has recently issued a warning regarding its fiscal first-quarter guidance. Additionally, the company’s board has approved a new share buyback program worth $50 million.
Instead of the previously projected range of $990 million to $1.03 billion, Plexus now expects its revenue for the quarter to be between $980 million and $985 million. The company also revised its operating margin forecast from 4.8% to 5.3% to approximately 4.6%.
Earnings per share are predicted to be $1.02 to $1.06, a change from the original estimate of $1.15 to $1.33 per share. Plexus attributes these adjustments to ongoing market-driven inventory corrections and weaker demand in its healthcare and industrial market sectors.
To further support the company’s growth and generate long-term shareholder value, Plexus’s Chief Executive, Todd Kelsey, stated that the board has approved a $50 million share repurchase program. This decision reflects their belief that acquiring their common stock at current market prices is a strategic use of capital.
In summary, Plexus’s recent announcement serves as a warning about its fiscal first-quarter performance while also highlighting the company’s commitment to shareholder value through the approved share buyback program.
Leave a Reply