Sanmina: How Watching Guidance Lead To This Profitable Trade
- Tracking management guidance and conference calls can give you hints of what is to come.
- Sanmina's quarterly performance was improving and management was optimistic about 2014.
- Management's credible historical guidance convinced me that the market would like 2Q14 results.
- This is a simple yet powerful example of a plain analysis that can be applied to other similar opportunities.
Sanmina-SCI: A Speculative Stock for Option Writers
Mon, Jul. 21, 5:45 PM
- Sanmina (NASDAQ:SANM) expects FQ4 revenue of $1.6B-$1.65B and EPS of $0.50-$0.55, largely above a consensus of $1.58B and $0.51.
- CEO Jure Sola: "Each of our end-market segments grew on a sequential basis, with notable performance from our industrial, medical and defense segment."
- Gross margin +20 bps Y/Y to 7.9%. SG&A spend +1% to $63M, R&D +16% to $7.8M. $6M was spent on buybacks.
- FQ3 results, PR
Mon, Jul. 21, 4:06 PM
Sun, Jul. 20, 5:35 PM
Tue, Apr. 22, 4:21 PM
Tue, Apr. 22, 12:10 AM
Mon, Apr. 21, 5:35 PM
Wed, Jan. 29, 5:41 PM
- Flextronics (FLEX) expects FQ4 revenue of $5.9B-$6.3B and EPS of $0.18-$0.22. The midpoints to those ranges are favorable to a consensus of $5.97B and $0.19.
- The contract manufacturer also says it plans to cut jobs in FQ4. The cuts are expected to produce $30M-$35M in pre-tax charges, and yield $60M/year in cost savings.
- Rival Sanmina (SANM) +1.3% AH in sympathy. Sanmina's shares took off yesterday after the company posted mixed FQ1 results and provided in-line FQ2 guidance.
- Flextronics' Q4 results, PR
Mon, Jan. 27, 7:05 PM
- Silicon Motion (SIMO) expects Q1 revenue to be flat to down 10% Q/Q vs.a consensus for a 2% decline. However, the company also expects 2014 revenue to be up 5%-15% Y/Y vs. a consensus for 5% growth. Shares +4.8% AH. (Q4 results, PR)
- STMicroelectronics (STM) expects Q1 revenue to decline 9.5% Q/Q (+/- 3.5%); that's worse than a consensus for a 7% drop. Shares unchanged AH for now. (Q4 results, PR)
- Sanmina (SANM) expects FQ2 revenue of $1.425B-$1.475B and EPS of $0.36-$0.42 vs. a consensus of $1.45B and $0.37. Shares +7.1% AH. (FQ1 results, PR)
Mon, Jan. 27, 4:09 PM
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Sun, Jan. 26, 5:35 PM
Oct. 28, 2013, 5:09 PM
- Sanmina (SANM) beat expectations in FQ4 but shares are dragged down 5.0% AH after the company issued weaker-than-expected guidance.
- Gross margin expanded to 7.7% in FQ4 from 7.3% in FQ4 2012 even as revenue declined slightly. Opex declined 14.8% Y/Y to $70.6M as the company's restructuring/integration expenses declined 74% to $4.6M.
- Management guides for FQ1 revenue of $1.425B-$1.475B (vs. consensus of $1.53B) and EPS of $0.35-$0.41 ($0.42). CEO Jure Sola: "Our revenue outlook for the first quarter is slightly down sequentially as a result of seasonality and slower than anticipated ramp of new programs. We expect to deliver modest growth and further improve our financial results for fiscal year 2014."
- PR, conference call at 5pm ET
Oct. 28, 2013, 4:07 PM
Oct. 28, 2013, 12:10 AM
Oct. 27, 2013, 5:35 PM
Sep. 26, 2013, 4:03 PM
- Jabil (JBL -10%) ended up adding to the AH losses it saw yesterday in response to the below-consensus FQ1 guidance provided with its FQ4 beat. Contract manufacturing peers Sanmina (SANM -2.3%), Flextronics (FLEX -1.3%), Multi-Fineline (MFLX -1.9%), and TTM Technologies (TTMI -1.6%) fell moderately.
- Contributing to Jabil's losses: the company disclosed on its FQ4 CC it's "faced with a strong possibility of disengaging with BlackBerry (BBRY -0.8%)" on account of the company's struggles.
- BlackBerry accounted for 12% of Jabil's FY13 revenue. Thanks to an estimated $0.28-$0.34/share hit from an expected BlackBerry wind-down, Jabil has set an FY14 EPS guidance range of $2.36-$2.60, soundly below a $2.85 consensus.
- Apple accounted for 19% of Jabil's FY13 revenue, and could make up over 20% of FY14 sales thanks to the expected BlackBerry drop.
- Previous: BlackBerry's FQ2 warning, Jabil falls in response
SANM vs. ETF Alternatives
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