Sanmina (NASDAQ:SANM) Announces Earnings Results

Key Points

• Sanmina exceeded quarterly expectations, reporting adjusted EPS of $3.31 versus the $2.77 consensus estimate and revenue of $3.46 billion compared with expectations of $3.40 billion.
• The stock traded around $208.90, while its valuation and price momentum remained notable: Sanmina has a $11.2 billion market capitalization, a P/E ratio of 44.16, and shares were below their 50-day moving average.
• Analyst sentiment is mixed, with two Buy ratings and three Holds producing a consensus Hold rating and a $160 price target. Insiders sold approximately $35.7 million worth of shares during the last quarter, while institutional investors own 92.71% of the stock.

Sanmina (NASDAQ:SANM - Get Free Report) released its quarterly earnings results on Monday. The electronics maker reported $3.31 EPS for the quarter, topping analysts' consensus estimates of $2.77 by $0.54, FiscalAI reports. Sanmina had a net margin of 2.29% and a return on equity of 16.23%. The business had revenue of $3.46 billion during the quarter, compared to analysts' expectations of $3.40 billion.

Sanmina Trading Up 0.2%

SANM traded up $0.47 during midday trading on Monday, reaching $208.90. 1,226,036 shares of the company's stock traded hands, compared to its average volume of 942,758. Sanmina has a 52 week low of $97.76 and a 52 week high of $288.68. The company has a debt-to-equity ratio of 0.77, a current ratio of 1.71 and a quick ratio of 1.03. The firm has a fifty day moving average of $236.49 and a two-hundred day moving average of $187.01. The stock has a market capitalization of $11.20 billion, a price-to-earnings ratio of 44.16, a P/E/G ratio of 0.80 and a beta of 1.56.

Insider Transactions at Sanmina

In related news, CFO Jonathan P. Faust sold 10,076 shares of Sanmina stock in a transaction on Friday, May 29th. The shares were sold at an average price of $265.80, for a total value of $2,678,200.80. Following the sale, the chief financial officer owned 77,000 shares in the company, valued at $20,466,600. The trade was a 11.57% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director David V. Hedley III sold 500 shares of the business's stock in a transaction on Friday, May 1st. The shares were sold at an average price of $219.52, for a total transaction of $109,760.00. Following the transaction, the director directly owned 7,376 shares in the company, valued at approximately $1,619,179.52. The trade was a 6.35% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 156,509 shares of company stock worth $35,699,476. Corporate insiders own 3.10% of the company's stock.

Institutional Investors Weigh In On Sanmina

Several institutional investors and hedge funds have recently modified their holdings of SANM. Invesco Ltd. boosted its stake in shares of Sanmina by 22.0% during the 4th quarter. Invesco Ltd. now owns 2,667,240 shares of the electronics maker's stock valued at $400,273,000 after purchasing an additional 481,588 shares in the last quarter. Mercer Global Advisors Inc. ADV increased its position in shares of Sanmina by 5.6% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 6,435 shares of the electronics maker's stock valued at $966,000 after buying an additional 342 shares during the period. Beacon Pointe Advisors LLC bought a new position in Sanmina in the fourth quarter worth about $229,000. State of Tennessee Department of Treasury raised its stake in Sanmina by 2.4% in the fourth quarter. State of Tennessee Department of Treasury now owns 21,743 shares of the electronics maker's stock worth $3,081,000 after buying an additional 506 shares in the last quarter. Finally, EP Wealth Advisors LLC purchased a new stake in Sanmina in the fourth quarter worth about $589,000. 92.71% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several brokerages have weighed in on SANM. Susquehanna assumed coverage on Sanmina in a research report on Wednesday, April 1st. They issued a "neutral" rating and a $135.00 price objective for the company. Zacks Research cut shares of Sanmina from a "strong-buy" rating to a "hold" rating in a report on Monday, June 29th. Weiss Ratings raised shares of Sanmina from a "buy (b-)" rating to a "buy (b)" rating in a research note on Wednesday, July 15th. JPMorgan Chase & Co. initiated coverage on shares of Sanmina in a report on Monday, March 30th. They set a "neutral" rating and a $145.00 price target for the company. Finally, Wall Street Zen cut shares of Sanmina from a "strong-buy" rating to a "buy" rating in a research report on Saturday, July 18th. Two research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat.com, Sanmina presently has a consensus rating of "Hold" and a consensus target price of $160.00.

About Sanmina

Sanmina Corporation is a leading global electronics manufacturing services (EMS) provider specializing in the design, production and end-to-end supply chain solutions for complex electronic products. Founded in 1980, the company has built a reputation for delivering high-reliability manufacturing across a wide range of industries, including communications, computing, aerospace and defense, medical, automotive and industrial sectors.

Sanmina's core offerings encompass product design and engineering support, precision PCB fabrication and assembly, system integration, testing, and final system deployment.

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