Electronics manufacturing services company Sanmina (NASDAQ: SANM) will be announcing earnings results this Monday afternoon. Here’s what to look for.
Sanmina beat analysts’ revenue expectations last quarter, reporting revenues of $3.46 billion, up 69.7% year on year. It was a very strong quarter for the company, with EPS guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ adjusted operating income estimates.
Is Sanmina a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Sanmina’s revenue to grow 66.1% year on year, improving from the 3.9% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Sanmina has a history of exceeding Wall Street’s expectations.
Looking at Sanmina’s peers in the electrical systems segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Vertiv delivered year-on-year revenue growth of 61.2%, beating analysts’ expectations by 14.5%, and GE Vernova reported revenues up 26.8%, topping estimates by 5.2%. Vertiv traded up 17.9% following the results while GE Vernova’s stock price was unchanged.
Read our full analysis of Vertiv’s results here and GE Vernova’s results here.
Investors in the electrical systems segment have had fairly steady hands going into earnings, with share prices down 1.7% on average over the last month. Sanmina is down 38% during the same time and is heading into earnings with an average analyst price target of $262.50 (compared to the current share price of $134.91).
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