Electronics manufacturing services company Sanmina (NASDAQ: SANM) will be announcing earnings results this Monday afternoon. Here’s what investors should know.
Sanmina beat analysts’ revenue expectations last quarter, reporting revenues of $3.19 billion, up 59% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ revenue estimates but revenue guidance for next quarter missing analysts’ expectations significantly.
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 64.7% year on year, improving from the 8.1% 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 to stay the course heading into earnings. Sanmina has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Sanmina’s peers in the electrical systems segment, some have already reported their Q1 results, giving us a hint as to what we can expect. GE Vernova delivered year-on-year revenue growth of 16.3%, beating analysts’ expectations by 0.8%, and LSI reported revenues up 13.6%, topping estimates by 9%. GE Vernova traded up 16.2% following the results while LSI was also up 6.6%.
Read our full analysis of GE Vernova’s results here and LSI’s results here.
There has been positive sentiment among investors in the electrical systems segment, with share prices up 12.6% on average over the last month. Sanmina is up 48% during the same time and is heading into earnings with an average analyst price target of $173.75 (compared to the current share price of $193.80).
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