Sanmina: Sitting In The Sweet Spot Of Contract Manufacturing
Helix Investment Research
Helix Investment Research
Yesterday, 5:37 PM
Mon, Apr. 25, 4:50 PM
- Sanmina (NASDAQ:SANM) is up 6.3% in postmarket trade following a fiscal Q2 earnings report where it beat on top and bottom lines and guided to the high side for Q3 profits.
- The company's EPS was highest in more than 10 years and cash generation was solid, CEO Jure Sola said.
- Non-GAAP operating margin was 4.1% and cash flow from operations was $142.6M. Inventory turns were 6.5x; cash cycle was at 44.6 days.
- For fiscal Q3, the company expects revenues of $1.625B-$1.675B (in line) and non-GAAP EPS of $0.61-$0.65, vs. consensus expectations for $0.61.
- Conference call to come at 5 p.m. ET.
- Press Release
Mon, Apr. 25, 4:08 PM
Mon, Jan. 25, 5:10 PM
- Though Sanmina (NASDAQ:SANM) missed FQ1 sales estimates and posted in-line EPS, the company is guiding for FQ2 revenue of $1.55B-$1.65B and EPS of $0.55-$0.59 vs. a consensus of $1.56B and $0.52.
- CEO Jure Sola: "We delivered solid margin improvement, EPS expansion and cash generation on a sequential basis [in FQ1], despite softer than expected revenue. As we look to the second quarter, demand is stable with growth driven by new programs. We remain optimistic that fiscal 2016 will be a growth year." The FY16 (ends Sep. '16) revenue growth consensus is at 1.8%.
- FQ1 details: Helping EPS meet estimates: Gross margin rose 50 bps Y/Y to 8.1% in spite of an 8% revenue drop, and SG&A spend fell by $1.7M to $57.7M. Also: $28.7M was spent to buy back 1.4M shares. R&D spend rose by $1.5M to $9.6M. Sanmina ended FQ1 with $398.4M in cash, and $513.6M in debt.
- Shares have risen to $18.30 after hours.
- Sanmina's FQ1 results, earnings release
Mon, Jan. 25, 4:21 PM
- Sanmina (NASDAQ:SANM): FQ1 EPS of $0.58 in-line.
- Revenue of $1.53B (-8.4% Y/Y) misses by $60M.
- Shares +1.84%.
Nov. 3, 2015, 10:13 AM
- Sanmina (NASDAQ:SANM) has surged towards $25 after beating FQ4 estimates and guiding for FQ1 EPS of $0.56-$0.60, above a $0.54 consensus. . Revenue guidance of $1.55-$1.6B is in-line with a $1.58B consensus.
- The contract manufacturer is optimistic FY16 (ends Sep. '16) "will be another growth year." The pre-earnings consensus was for FY16 sales to total $6.39B (nearly flat Y/Y).
- Buybacks lifted FQ4 EPS: $51.8M was spent to repurchase 2.5M shares. A new $200M buyback was launched in September. A 3% Y/Y revenue drop led op. margin (non-GAAP) to fall to 3.8% from 4.2% a year ago. Sanmina ended FQ4 with $412M in cash, and $537M in debt.
- FQ4 results, PR
Oct. 22, 2015, 1:53 PM
- Believing its valuation is high and end-market demand is weakening, Goldman has downgraded Sanmina (NASDAQ:SANM) to Sell, and set a $20 target.
- The contract manufacturer currently goes for 9x an FY16 (ends Sep. '16) EPS consensus of $2.32. Shares rallied in July thanks to an FQ3 beat and strong guidance.
Jul. 21, 2015, 9:15 AM
Jul. 20, 2015, 5:39 PM
Jul. 20, 2015, 4:12 PM
- Sanmina (NASDAQ:SANM) has jumped to $20.80 AH after beating FQ3 estimates and issuing strong FQ4 guidance: Revenue of $1.55B-$1.65B and EPS of $0.52-$0.58, above a consensus of $1.56B and $0.53 at the midpoints.
- Financials: FQ3 gross margin fell 10 bps Y/Y to 7.8%. SG&A spend fell 5% Y/Y to $59.7M (boosted EPS). R&D spend rose 6% to $8.3M. $47.7M was spent on buybacks (also lifted EPS). Sanmina ended FQ3 with $417M in cash, and $432M in debt.
- FQ3 results, PR
Apr. 21, 2015, 12:47 PM
Apr. 21, 2015, 9:22 AM
Apr. 20, 2015, 5:38 PM
Apr. 20, 2015, 5:04 PM
- In addition to missing FQ2 estimates, Sanmina (NASDAQ:SANM) is guiding for FQ3 revenue of $1.5B-$1.55B and EPS of $0.48-$0.52, below a consensus of $1.64B and $0.56.
- The contract manufacturer attributes the outlook to "continued headwind in our communications networks segment." Industrial, medical, and defense sales are expected to grow.
- Op. margin (non-GAAP) rose 10 bps Y/Y to 3.7%. $21.6M was spent to buy back 1M shares. Sanmina ended FQ2 with $407.7M in cash, and $470M in debt.
- Shares have tumbled to $20.75 AH.
- FQ2 results, PR
Apr. 14, 2015, 12:02 PM
Apr. 7, 2015, 3:18 PM
- Today's notable tech gainers include privileged account protection software leader CyberArk (CYBR +7.5%), seismic hardware provider Geospace (GEOS +10.5%), M2M hardware/4G router provider Novatel (MIFI +8.4%), Chinese auto site Autohome (ATHM +5.5%), cloud revenue management software provider ServiceSource (SREV +5.4%), and unstructured data management software vendor Varonis (VRNS +4.9%). The Nasdaq is up 0.3%.
- There are fewer major decliners. Notable ones include RF chipmaker Qorvo (QRVO -3.5%), contract manufacturer Sanmina (SANM -3.4%), and IP licensing firm Worlds (OTCQB:WDDD -10.7%).
- Volatile CyberArk has risen to its highest levels since early March, two week before a lockup expired. Geospace, buoyed by rising oil prices, is up 22% over the last two days. ServiceSource's gains follow the naming of a new CFO.
- Qorvo's decline come in spite of a target hike (to $95 from $87) by Brean; the firm argues growing Chinese phone exports and rising RF chip content are offsetting domestic Chinese softness for Qorvo and peers.
- Previously covered: Twitter, FireEye, DragonWave, Axcelis, IGT, Marketo, 500.com, InPhi, Demandware, Splunk, Informatica
Sanmina Corp. engages in the provision of integrated manufacturing solutions, components, products and repair, logistics, and after-market services. It operates through the following business segments: Integrated Manufacturing Solutions; and Components, Products and Services. The Integrated... More
Industry: Printed Circuit Boards
Country: United States
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