Electronics manufacturing services company Sanmina (NASDAQ: SANM) will be reporting earnings this Monday after market hours. Here’s what you need to know.
Sanmina beat analysts’ revenue expectations last quarter, reporting revenues of $4.01 billion, up 102% year on year. It was an exceptional quarter for the company, with a beat of analysts’ EPS estimates 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 66.6% year on year, improving from the 10.9% 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 rarely misses Wall Street’s revenue estimates.
Looking at Sanmina’s peers in the electrical systems segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Allegion delivered year-on-year revenue growth of 12.7%, beating analysts’ expectations by 3.1%, and Acuity Brands reported revenues up 1.6%, topping estimates by 1.2%. Allegion traded up 9.6% following the results.
Read our full analysis of Allegion’s results here and Acuity Brands’s results here.
In the last year or so, investors have shifted their focus from one macro dynamic to the next (AI disintermediation and AI investment to geopolitical conflict, interest rates, and the health of the wider economy). While some of the electrical systems stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3.3% on average over the last month. Sanmina is down 12.9% during the same time and is heading into earnings with an average analyst price target of $240 (compared to the current share price of $206).
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