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Sanmina Corp. Sees Strong Q2 Results, Expects Improvement in Second Half

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Shares of Sanmina Corp. experienced a rally after hours on Monday following the company’s positive forecast for the second quarter. As a leading tech-systems developer and services provider, Sanmina announced that its projected results exceeded Wall Street’s expectations. Additionally, the company stated that it anticipated stronger performance in the second half of the year.

Previously, Sanmina expressed concerns about its customers’ cautiousness due to ongoing macroeconomic uncertainty. However, the latest forecast indicates a positive shift for the company. Sanmina expects second-quarter revenue to range between $1.825 billion and $1.925 billion, surpassing FactSet forecasts of $1.8 billion. Moreover, management predicts adjusted earnings per share of $1.20 to $1.30, outperforming analysts’ expectations of $1.02.

Chief Executive Jure Sola shared his perspective on the outlook, stating, “Our forecast for the second quarter aligns with our expectations for the first half of fiscal 2024. We believe there will be sequential improvement as we progress into the second half of the year.”

Following the announcement, Sanmina Corp.’s shares soared by 13% after hours on Monday.

Sanmina is renowned for its contributions in designing complex circuit boards, assisting companies in manufacturing and testing, and providing products and technology for various sectors such as medical, communications, and defense industries. Notably, the company specializes in developing lighting systems, car sensors, and satellite communication technology.

In previous reports, CEO Jure Sola had addressed concerns about inventory adjustments among some of Sanmina’s customers. However, the recent financial report for the first quarter of fiscal 2024 reflects a net income of $57.07 million, or 98 cents per share. Although this represents a decline compared to the same quarter in 2022 ($92 million, or $1.54 per share), Sanmina reported adjusted earnings per share of $1.30. Additionally, the company’s revenue for this quarter was $1.87 billion, down from $2.36 billion in the prior-year quarter.

Analysts surveyed by FactSet had projected adjusted earnings per share of $1.15 on revenue of $1.87 billion.

Over the past 12 months, Sanmina Corp.’s shares have experienced an 8.8% decline.

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