Shares of electronic manufacturing services company Plexus (NASDAQ:PLXS) fell 11.2% in the afternoon session after its third-quarter earnings report showed a significant beat on profit but included a weak forecast for fourth-quarter revenue.
Electronic manufacturing services company Plexus (NASDAQ:PLXS) met Wall Street’s revenue expectations in Q2 CY2025, with sales up 6% year on year to $1.02 billion. On the other hand, next quarter’s revenue guidance of $1.05 billion was less impressive, coming in 3.3% below analysts’ estimates. Its non-GAAP profit of $1.90 per share was 11% above analysts’ consensus estimates.
Small-cap stocks can be incredibly lucrative investments because their lack of analyst coverage leads to frequent mispricings.
However, these businesses (and their stock prices) often stay small because their subscale operations make it harder to expand their competitive moats.
Companies with more cash than debt can be financially resilient, but that doesn’t mean they’re all strong investments.
Some lack leverage because they struggle to grow or generate consistent profits, making them unattractive borrowers.
The Russell 2000 (^RUT) is home to many small-cap stocks, offering investors the chance to uncover hidden gems before the broader market catches on.
However, these companies often come with higher volatility and risk, as their smaller size makes them more vulnerable to economic downturns.
A company that generates cash isn’t automatically a winner.
Some businesses stockpile cash but fail to reinvest wisely, limiting their ability to expand.
Business services providers thrive by solving complex operational challenges for their clients, allowing them to focus on their secret sauce. Still, investors are uneasy as firms face challenges from AI-driven disruptors and tightening corporate budgets.
These doubts have caused the industry to lag recently as services stocks have collectively shed 2.4% over the past six months. This drawdown was disheartening since the S&P 500 stood firm.
Electronic manufacturing services company Plexus (NASDAQ:PLXS) met Wall Street’s revenue expectations in Q1 CY2025, with sales up 1.4% year on year to $980.2 million. The company expects next quarter’s revenue to be around $1.02 billion, close to analysts’ estimates. Its non-GAAP profit of $1.66 per share was 7.8% above analysts’ consensus estimates.
As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q1. Today, we are looking at electronic components & manufacturing stocks, starting with Plexus (NASDAQ:PLXS).
Small-cap stocks in the Russell 2000 (^RUT) can be a goldmine for investors looking beyond the usual large-cap names.
But with less stability and fewer resources than their bigger counterparts, these companies face steeper challenges in scaling their businesses.
A surplus of cash can mean financial stability, but it can also indicate a reluctance (or inability) to invest in growth.
Some of these companies also face challenges like stagnating revenue, declining market share, or limited scalability.
Electronic manufacturing services company Plexus (NASDAQ:PLXS) met Wall Street’s revenue expectations in Q1 CY2025, with sales up 1.4% year on year to $980.2 million. The company expects next quarter’s revenue to be around $1.02 billion, close to analysts’ estimates. Its non-GAAP profit of $1.66 per share was 7.8% above analysts’ consensus estimates.
Looking back on electronic components & manufacturing stocks’ Q4 earnings, we examine this quarter’s best and worst performers, including Plexus (NASDAQ:PLXS) and its peers.
As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q4. Today, we are looking at electronic components & manufacturing stocks, starting with Coherent (NYSE:COHR).
