Sanmina Reports Strong Q4 Earnings, Revenue Declines Slightly

Sanmina Corporation's latest report reveals outperforming earnings figures for the fourth quarter, exceeding analyst expectations despite a slight drop in revenue. Guidance for next quarter remains cautiously optimistic.

Date: 04-11-2024

AI Rating: 7

Sanmina Corporation (SANM) has recently released its earnings report for the fourth quarter, showcasing some significant developments that could influence stock prices. Firstly, the bottom line reported was $61.38 million, translating to an Earnings Per Share (EPS) of $1.09. This marks an increase from $1.04 per share recorded in the same quarter last year. The positive change in EPS indicates a strong performance in the face of revenue challenges.

In adjusted earnings, Sanmina reported $80.30 million or $1.43 per share, which not only surpassed last year's adjusted EPS but also exceeded analyst expectations of $1.36 per share. This indicates that Sanmina is capable of managing its operations effectively, which is a positive factor for investors looking for stability and growth potential.

However, despite positive earnings, the company saw a revenue decline of 1.7%, with the fourth-quarter revenues standing at $2.017 billion compared to $2.052 billion the previous year. This slight decrease in revenue may raise concerns regarding the company's sales performance and overall demand for its products.

The forthcoming guidance for the next quarter suggests an EPS expectation of between $1.30 and $1.40, along with revenue projections ranging from $1.925 billion to $2.025 billion. While the EPS guidance appears optimistic, it also points to a cautious outlook for revenue growth, which may affect investor sentiment.

In summary, Sanmina's solid earnings performance is a positive for investors, but the revenue decline and cautious guidance could temper enthusiasm moving forward. Investors will need to keep a close eye on future quarters to assess whether the company can sustain EPS growth while recovering revenue levels.

Stocks: SANM