Electronics manufacturing services company Sanmina (NASDAQ: SANM) will be announcing earnings results this Monday after market close. Here’s what to expect.
Sanmina beat analysts’ revenue expectations by 2.2% last quarter, reporting revenues of $2.10 billion, up 3.9% year on year. It was an exceptional quarter for the company, with EPS guidance for next quarter exceeding analysts’ expectations and revenue guidance for next quarter exceeding analysts’ expectations.
Is Sanmina a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Sanmina’s revenue to grow 54% year on year to $3.09 billion, improving from the 7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.15 per share.
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 twice over the last two years.
Looking at Sanmina’s peers in the electrical equipment segment, some have already reported their Q4 results, giving us a hint as to what we can expect. LSI posted flat year-on-year revenue, beating analysts’ expectations by 4.9%, and Acuity Brands reported revenues up 20.2%, in line with consensus estimates. LSI traded up 8.6% following the results while Acuity Brands was down 12%.
Read our full analysis of LSI’s results here and Acuity Brands’s results here.
There has been positive sentiment among investors in the electrical equipment segment, with share prices up 8.3% on average over the last month. Sanmina is up 15.5% during the same time and is heading into earnings with an average analyst price target of $195 (compared to the current share price of $177.61).
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