Sanmina (NASDAQ:SANM) Shares Gap Up Following Earnings Beat

Key Points

• Sanmina reported quarterly EPS of $4.43 versus the $3.27 consensus and revenue of $3.86 billion versus $3.48 billion; revenue rose 84% year over year.
• Shares jumped about 11.6% after the earnings beat, opening at $166.40 compared with the prior close of $149.64.
• For fiscal 2027, Sanmina forecast revenue of $17.5 billion–$19.5 billion and EPS of $15.50–$17.50, both above analyst estimates; it expects cloud and AI systems revenue of $7.5 billion–$9.0 billion.

Sanmina Corporation (NASDAQ:SANM - Get Free Report)'s stock price gapped up before the market opened on Tuesday after the company announced better than expected quarterly earnings. The stock had previously closed at $149.64, but opened at $166.40. Sanmina shares last traded at $165.2470, with a volume of 754,675 shares traded.

The electronics maker reported $4.43 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $3.27 by $1.16. The company had revenue of $3.86 billion for the quarter, compared to analyst estimates of $3.48 billion. Sanmina had a return on equity of 19.08% and a net margin of 2.41%. Sanmina's revenue for the quarter was up 84.0% compared to the same quarter last year. During the same quarter last year, the company earned $1.67 EPS. Sanmina has set its Q1 2027 guidance at 3.500-3.850 EPS and its FY 2027 guidance at 15.500-17.500 EPS.

More Sanmina News

Here are the key news stories impacting Sanmina this week:

• Positive Sentiment: Sanmina reported Q4 adjusted EPS of $4.43, beating the $3.27 consensus, while revenue of $3.86 billion topped the $3.48 billion estimate and rose 84% year over year. Article: Sanmina Beats Q4 Earnings and Revenue Estimates
• Positive Sentiment: The company forecast fiscal 2027 revenue of $17.5 billion–$19.5 billion, above the $16.7 billion consensus, and EPS of $15.50–$17.50, above the $13.90 estimate. Its Q1 EPS outlook also exceeded expectations. Article: Sanmina Outlines FY 2027 Revenue Guidance
• Positive Sentiment: Management expects cloud and AI systems revenue to reach $7.5 billion–$9.0 billion in FY2027, reinforcing investor optimism about the company’s exposure to accelerating data-center demand. Article: Sanmina's Manufacturing Business and AI Opportunity
• Neutral Sentiment: Coverage notes that Sanmina’s current earnings strength is primarily driven by its broader manufacturing business; AI may become a larger growth driver over time, but that opportunity is still developing. Article: Sanmina's Manufacturing Business and Future AI Opportunity

Analyst Upgrades and Downgrades

A number of equities research analysts have commented on SANM shares. Wall Street Zen raised shares of Sanmina from a "buy" rating to a "strong-buy" rating in a research report on Sunday, October 11th. JPMorgan Chase & Co. decreased their price objective on shares of Sanmina from $275.00 to $260.00 and set a "neutral" rating for the company in a research report on Tuesday, July 28th. Weiss Ratings downgraded shares of Sanmina from a "buy (b)" rating to a "buy (b-)" rating in a research note on Friday, September 18th. Finally, Zacks Research downgraded shares of Sanmina from a "strong-buy" rating to a "hold" rating in a research note on Monday, September 28th. Two investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat.com, Sanmina has an average rating of "Hold" and an average target price of $198.33.

Hedge Funds Weigh In On Sanmina

Several hedge funds have recently added to or reduced their stakes in SANM. BlackRock Inc. acquired a new position in shares of Sanmina in the 2nd quarter valued at $1,390,702,000. Bank of America Corp DE acquired a new stake in Sanmina during the 2nd quarter worth $189,012,000. Alyeska Investment Group L.P. raised its stake in Sanmina by 365.4% during the 2nd quarter. Alyeska Investment Group L.P. now owns 504,067 shares of the electronics maker's stock worth $127,569,000 after acquiring an additional 395,764 shares in the last quarter. Hennessy Advisors Inc. raised its stake in Sanmina by 13.9% during the 2nd quarter. Hennessy Advisors Inc. now owns 347,400 shares of the electronics maker's stock worth $87,920,000 after acquiring an additional 42,500 shares in the last quarter. Finally, Bank of New York Mellon Corp purchased a new stake in Sanmina in the second quarter valued at $87,522,000. 92.71% of the stock is currently owned by hedge funds and other institutional investors.

Sanmina Trading Up 11.6%

The company has a quick ratio of 1.06, a current ratio of 1.78 and a debt-to-equity ratio of 0.71. The stock has a market capitalization of $8.95 billion, a PE ratio of 29.55, a PEG ratio of 0.40 and a beta of 1.72. The business's 50-day moving average is $192.37 and its two-hundred day moving average is $190.56.

About Sanmina

Sanmina Corporation is a provider of integrated manufacturing solutions for companies that develop complex electronic, optical, and electromechanical products. Its services span product design and engineering, supply-chain management, manufacturing, and logistics, as well as repair and other aftermarket support.

The company serves customers in markets that include communications networks, cloud and data-center infrastructure, medical and life sciences, automotive, industrial equipment, and aerospace and defense.

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