Core Insights - Sanmina Corporation (SANM) has experienced a 26.4% increase in stock price over the past six months, outperforming the S&P 500 but lagging behind the Electronic Manufacturing Services industry's growth of 32.3% [1][9] - The company has outperformed Jabil, Inc. (JBL) but underperformed Celestica, Inc. (CLS), with Celestica showing a 38.9% increase and JBL a 6.9% increase [2] Financial Performance - In Q4 2025, Integrated Manufacturing Solutions (IMS) revenues surged 72% year over year to $2.79 billion, with a non-GAAP gross margin increase of 8.7% [4] - The Components, Products and Services (CPS) business saw a 4.33% year-over-year increase to $434 million, with a non-GAAP gross margin of 12.9% [5] - Non-GAAP operating profit increased by 40 basis points year over year due to reduced operating expenses as a percentage of revenues [6] Cash Flow and Liquidity - In Q1 fiscal 2026, Sanmina generated $178.7 million in net cash from operating activities, up from $63.9 million in the same quarter last year, with free cash flow reaching $92 million [7][9] - The current ratio at the end of Q1 fiscal 2026 was 1.70, indicating a strong position to meet short-term debt obligations [11] Growth Prospects - The company is focusing on investments in capacity and technology improvements across operations in the U.S., India, and Mexico, enhancing its competitive position in the electronics manufacturing services industry [10] - Earnings estimates for 2025 have risen by 4.36% to $10.06 per share, while estimates for 2026 have increased by 5.67% to $12.11, reflecting bullish sentiment [12] Valuation Metrics - Sanmina's shares trade at a forward price/earnings ratio of 13.52, which is lower than the industry average of 24.12 and its historical mean of 17.32, indicating a relatively attractive valuation [13] Overall Outlook - The company is benefiting from strong momentum in various end markets, with efficient capital management allowing for continued investment in growth initiatives [15]

If you like to see more ideas, please subscribe to the premium service "Value in Corporate Events" here and try the free trial. In this service we cover major earnings events, M&A, IPOs and other significant corporate events with actionable ideas. Furthermore, we provide coverage of situations and names on request!In the final days of last year, I concluded that the acquisition of ZT Systems has proven to be a real winner for Sanmina ( SANM ), with shares doubling in the time frame ofThe Value Investor has ...

Core Insights - The acquisition of ZT Systems has significantly benefited Sanmina, resulting in the company's shares doubling in value over a specific timeframe [1]. Group 1: Company Performance - Sanmina's acquisition of ZT Systems is highlighted as a successful strategic move, leading to substantial growth in share value [1]. Group 2: Investment Opportunities - The service "Value in Corporate Events" focuses on identifying actionable investment opportunities through major corporate events such as earnings reports, M&A, and IPOs [1].

Sanmina Corporation (NASDAQ:SANM) is one of the High-Flying Stocks to Buy Right Now. On January 27, Argus lifted its price objective on the company’s stock to $200 from $170, while keeping a “Buy” rating, as reported by The Fly. As per the analyst, the firm appreciated Sanmina Corporation (NASDAQ:SANM)’s Q1 2026 earnings beat. Also, it noted the company’s strong manufacturing presence in the Americas. Argus Raises PT on Sanmina (SANM) Stock The firm further added that tariffs have not significantly impac ...

分组1 - Sanmina Corporation reported its fiscal Q1 results for the October-December period on January 26, marking the first report after a significant event [1] - The company focuses on identifying mispriced securities by understanding the drivers behind financials, utilizing a DCF model valuation to assess risk-to-reward [1]

Key Takeaways SANM delivered strong Q1 FY26, with revenues up 59% to $3.19B and earnings surpassing the consensus estimate.SANM's Integrated Manufacturing Solutions surged 72.2% to $2.79B, accounting for 87.5% of total revenue.SANM generated $178.7M operating cash flow, repurchased $79M of shares, and guided Q2 revenues of $3.1-$3.4B.Sanmina Corporation (SANM) reported strong first-quarter fiscal 2026 results, with both top and bottom lines surpassing the Zacks Consensus Estimate.The California-based electr ...

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Group 1 - Sanmina reported quarterly earnings of $2.38 per share, exceeding the Zacks Consensus Estimate of $2.15 per share, and showing a significant increase from $1.44 per share a year ago, resulting in an earnings surprise of +10.96% [1] - The company achieved revenues of $3.19 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 2.89%, and up from $2.01 billion in the same quarter last year [2] - Sanmina has consistently outperformed consensus EPS and revenue estimates over the last four quarters, indicating strong operational performance [2] Group 2 - The stock has gained approximately 18.5% since the beginning of the year, significantly outperforming the S&P 500's gain of 1% [3] - The future performance of Sanmina's stock will largely depend on management's commentary during the earnings call and the outlook for upcoming earnings [4][6] - The current consensus EPS estimate for the next quarter is $2.36 on revenues of $3.49 billion, and for the current fiscal year, it is $9.64 on revenues of $14 billion [7] Group 3 - The Electronics - Manufacturing Services industry, to which Sanmina belongs, is currently ranked in the top 25% of over 250 Zacks industries, suggesting a favorable outlook for companies within this sector [8] - Another company in the same industry, Celestica, is expected to report quarterly earnings of $1.74 per share, reflecting a year-over-year increase of +56.8%, with revenues projected at $3.47 billion, up 36.1% from the previous year [9][10]

Financial Data and Key Metrics Changes - Revenue for Q1 Fiscal 2026 was $3.19 billion, representing a 59% increase compared to the same period a year ago [12][13] - Non-GAAP operating margin was 6.0%, up 40 basis points year-over-year [14] - Non-GAAP diluted earnings per share reached $2.38, a 66.1% increase compared to the same period last year [14] Business Line Data and Key Metrics Changes - IMS revenue was $2.79 billion, up 72% year-over-year, driven by growth in communications networks and cloud and AI infrastructure [15][16] - CPS revenue was $434 million, a 4.3% increase year-over-year, with a non-GAAP gross margin of 12.9%, which is lower than recent performance due to investments for new programs [17] Market Data and Key Metrics Changes - Communication networks and cloud infrastructure accounted for approximately 62% of total revenue, with core business growth of about 20% year-over-year [28] - Industrial, energy, medical, defense, aerospace, automotive, and transportation contributed 38% of revenue, slightly down by 3% year-over-year, but expected to stabilize [28] Company Strategy and Development Direction - The company aims to double revenue in the next two years, targeting $16 billion by calendar year 2027, with a strong focus on AI opportunities [34] - Strategic investments are planned in technologies and capabilities to support growth, particularly in AI data centers and energy solutions [21][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory for fiscal 2026, with expectations for continued strong demand in AI hardware and core business growth in high single digits [24][38] - The company is focused on maintaining a healthy balance sheet while investing in future growth opportunities [20][36] Other Important Information - Cash flow from operations was $179 million, with capital expenditures of $87 million for the quarter [20] - The company has a strong balance sheet with cash and cash equivalents of $1.42 billion and no outstanding borrowings on its $1.5 billion revolver [18] Q&A Session Summary Question: Can you help parse through the sequential revenue guidance for the March quarter? - Management indicated that the business is improving and that they are guiding one quarter at a time, with expectations for strong performance in both core Sanmina and ZT Systems [42][44] Question: How do you see the transition occurring with ZT Systems? - Management confirmed that the transition is on track and that they are focused on future opportunities, emphasizing the importance of execution and customer relationships [45][49] Question: What is the outlook for the communications market? - Management reported strong demand in the communications market, expecting continued strength in the March quarter and throughout the year [55]