Core Insights - Sanmina Corporation is a significant player in the Electronics Manufacturing Services (EMS) market, providing solutions to OEMs across various sectors including industrial, medical, defense, automotive, communications, and cloud infrastructure [1] Financial Performance - Sanmina is expected to report quarterly earnings on January 26, 2026, with an anticipated EPS of $2.15 and revenue of approximately $3.09 billion, aligning closely with the Zacks Consensus Estimate of $3.1 billion in sales [2][6] - The company has historically exceeded earnings expectations, with an average earnings surprise of 5.35% over the last four quarters [2] Strategic Initiatives - The recent acquisition of ZT Systems' data center business is aimed at enhancing Sanmina's capabilities in the Cloud and AI sectors, alongside a collaboration with Konar to co-design a medium-voltage transformer, strengthening its position in energy manufacturing [3][6] Valuation Metrics - Sanmina's financial metrics indicate a strong market position, with a P/E ratio of 39.14, a price-to-sales ratio of 1.21, and an enterprise value to sales ratio of 1.13, reflecting its valuation relative to revenue [4] - The enterprise value to operating cash flow ratio stands at 14.77, indicating efficient cash flow generation [4] Financial Health - The company maintains a solid financial foundation with a debt-to-equity ratio of 0.13, suggesting low debt levels compared to equity [5] - A current ratio of 1.72 indicates a strong ability to cover short-term liabilities with short-term assets, underscoring robust financial health and growth potential [5]

Core Viewpoint - Sanmina Corporation (SANM) is set to report its first-quarter fiscal 2026 earnings on January 26, with consensus estimates for sales at $3.1 billion and earnings per share (EPS) at $2.15, indicating stable earnings projections for fiscal years 2026 and 2027 [1][4]. Earnings Estimates - The earnings estimates for Q1 FY26 remain unchanged at $2.15, with Q2 also at $2.36, and fiscal years 2026 and 2027 at $9.64 and $11.46 respectively, showing no revisions over the past 60 days [2]. - Sanmina has a trailing four-quarter earnings surprise average of 5.35%, having beaten estimates in each of the previous quarters, with the last quarter's surprise at 6.37% [2][3]. Recent Developments - Sanmina completed the acquisition of ZT Systems' data center infrastructure manufacturing business from AMD for up to $3 billion, enhancing its capabilities in the Cloud and AI market [6]. - The company partnered with Koncar to co-design a medium-voltage transformer, which is expected to boost revenues in power transmission and energy infrastructure manufacturing [7]. Price Performance - Over the past year, Sanmina's stock has increased by 116.2%, outperforming the Electronics - Manufacturing Services industry growth of 84.4% and its peer Jabil Inc. (47.6% increase), but lagging behind Celestica Inc. (129.8% increase) [8]. Valuation Metrics - Sanmina's shares are currently trading at a price/earnings ratio of 17.76, which is lower than the industry average of 25.74 but higher than its own historical mean of 11.46 [9]. Market Position and Demand - The company is experiencing strong demand across key markets, including communications networks, cloud and AI infrastructure, medical, and defense and aerospace sectors, benefiting from a diversified presence [11]. - Sanmina's end-to-end offerings from design to manufacturing provide a competitive edge in the market [11]. Challenges - Ongoing supply chain disruptions are causing component shortages and delivery delays, while strong competition from larger EMS companies is pressuring sales and margins [12]. - High exposure to overseas manufacturing introduces geopolitical risks, tariffs, and increased costs, alongside elevated R&D spending impacting profitability [12][13].

Core Insights - Sanmina Corporation (SANM) is focusing on advancing high-speed network infrastructure through its fiber expertise, providing reliable and scalable solutions for telecom, data center, and enterprise markets [1] Group 1: Product Offerings - Sanmina's fiber portfolio includes fiber optic cables, transceivers, assemblies, connectors, and active optical cables, delivering high bandwidth, low latency, and reliable performance [2] - The company also offers passive components, optical sub-assemblies, and ruggedized solutions for demanding applications, along with optical line cards, WDM components, and fiber panels [2] Group 2: Partnerships and Collaborations - Sanmina collaborates with Nokia Corporation (NOK) to produce fiber-optic network equipment and optical modules in the U.S., supporting broadband expansion programs like BEAD [3] - The company develops customized fiber solutions for challenging environments, making it a trusted partner for network operators upgrading their fiber infrastructure [3] Group 3: Market Outlook - According to Grand View Research, the global fiber optics market is projected to grow to approximately $17.95 billion by 2033, with a CAGR of 6.6% [4] - Sanmina's strengths in innovation, engineering, and global manufacturing position it to capitalize on the increasing demand for high-speed fiber connectivity [4] Group 4: Competitive Landscape - Sanmina faces competition from Corning Incorporated (GLW) and Amphenol Corporation (APH), with Corning focusing on high-bandwidth optical connections in AI data centers [5] - Amphenol has acquired CommScope's Connectivity and Cable Solutions business to enhance its fiber optic offerings and is expanding its product range for harsh environments [6] Group 5: Financial Performance - Sanmina's shares have increased by 110.8%, outperforming the Electronics - Manufacturing Services industry's growth of 86% [7] - The company's shares currently trade at 17.41 times forward 12-month earnings, which is lower than the industry average [9] - Earnings estimates for 2025 and 2026 have remained static at $9.64 and $11.46, respectively [10]

Group 1 - Sanmina Corporation will host its first quarter fiscal 2026 earnings conference call on January 26, 2026, at 5:00 PM ET [1] - The live webcast and supporting materials will be available on the Sanmina website in the Investor Relations section [1] - A replay of the webcast will be accessible at the same location after the event concludes [1] Group 2 - Sanmina Corporation is a Fortune 500 company and a leading integrated manufacturing solutions provider in the global Electronics Manufacturing Services (EMS) market [2] - The company offers end-to-end manufacturing solutions, focusing on sectors such as industrial and energy, medical, defense and aerospace, automotive and transportation, communications networks, and cloud and AI infrastructure [2] - Sanmina has strategically located facilities in key regions worldwide [2]

Core Insights - Sanmina Corporation (SANM) is expanding its presence in the AI market by leveraging its advanced electronics manufacturing and data center capabilities, positioning itself as a key enabler of AI infrastructure [1][4] Group 1: Company Developments - The acquisition of ZT Systems enhances Sanmina's ability to provide AI-ready data center infrastructure, catering to hyperscale customers [2][8] - Sanmina has partnered with specialists like DeepCoolAI to innovate in the AI market, focusing on advanced liquid cooling and high-density data center solutions [2] - The introduction of the Viking Edge AI Computational Storage Appliance supports efficient edge AI deployment by integrating compute, storage, and networking [3][8] Group 2: Market Context - The global AI market is projected to grow to nearly $3,497.26 billion by 2033, with a compound annual growth rate (CAGR) of 30.6%, indicating significant demand for AI infrastructure [4] - Competitors like Jabil, Inc. and Celestica Inc. are also making strides in the AI market, with Jabil enhancing audio products with AI features and Celestica launching high-performance hardware for AI workloads [5][6] Group 3: Financial Performance - Sanmina's shares have increased by 104.5%, outperforming the Electronics - Manufacturing Services industry's growth of 100.3% [7] - The company's shares are currently trading at 16.45 times forward 12-month earnings, which is lower than the industry average [9] - Earnings estimates for 2025 and 2026 have remained static at $9.64 and $11.46, respectively, over the past 60 days [10]

Core Insights - Jabil Inc. and Sanmina Corporation are leading players in the electronics manufacturing services (EMS) industry, with Jabil being a prominent provider of EMS solutions globally [1][2] - The EMS industry is expected to grow significantly due to digital transformation, AI investments, and IoT adoption [3] Jabil Insights - Jabil has a diverse product portfolio and strong presence in various sectors, including AI data center infrastructure, automotive, and renewable energy [4] - The AI data center market is projected to grow from $13.62 billion in 2025 to $60.49 billion in 2030, with a compound annual growth rate of 28.3% [5] - Recent acquisitions, such as Hanley Energy Group and Mikros Technologies, have enhanced Jabil's capabilities in data center power management and thermal management [6] - Jabil operates a robust supply chain network across 100 locations in 30 countries, which enhances its reliability and scalability [7] - Jabil faces competition from companies like Celestica and Flex, but its strategic initiatives position it well for competitive advantage [7] Sanmina Insights - Sanmina emphasizes innovation and product diversification, working closely with customers to adapt to future manufacturing needs [8] - The company has developed a connected manufacturing process that improves decision-making by providing real-time data from global factories [10] - Sanmina has faced supply chain disruptions due to geopolitical issues but is working to strengthen its supply chain and is launching a new facility in Houston, TX [11] - The company is gaining traction in cloud and AI infrastructure markets, although competition from other EMS players remains a concern [12] Financial Performance - Sanmina's 2025 sales and EPS estimates imply year-over-year growth of 72.2% and 59.6%, respectively, with stable EPS estimates over the past 60 days [13] - Jabil's 2025 sales and EPS estimates indicate year-over-year growth of 8.8% and 18.46%, with a 4.52% upward trend in EPS estimates over the past 60 days [15] - Over the past year, Sanmina's stock has increased by 92.2%, while Jabil's has risen by 47.3% [16] - From a valuation perspective, Sanmina's shares trade at a forward P/E ratio of 15.11, compared to Jabil's 18.49 [17] Investment Outlook - Both companies are expected to benefit from net sales growth driven by AI proliferation, but Sanmina faces ongoing supply chain challenges [19] - Jabil's strategic acquisitions and product innovations position it favorably in the AI hardware supply chain, making it a more attractive investment option with a Zacks Rank 2 (Buy) [19][18]

Core Insights - Earnings estimates for Sanmina Corporation (SANM) for 2025 and 2026 have increased by 38.9% to $9.64 and 43.4% to $11.46 respectively, indicating positive sentiment regarding the stock's growth potential [1][7]. Group 1: Connected Manufacturing - Sanmina is focusing on 42Q connected manufacturing, which integrates data from global factories and suppliers, creating a real-time information base that enhances visibility and accelerates decision-making [2]. - The 42Q connected manufacturing system has been deployed in over 70 factories across 15 countries, connecting more than 35,000 manufacturing devices in the cloud, allowing for a customer-focused approach to anticipate manufacturing needs [3]. Group 2: Vertical Integration - Sanmina provides end-to-end solutions including product design, manufacturing, assembly, testing, and aftermarket support, which allows clients to rely on a single partner throughout the product lifecycle [4]. - The vertically integrated manufacturing process streamlines operations and reduces costs, enabling greater economies of scale and faster time to market [5]. Group 3: Market Performance - Sanmina's stock has surged 100.7% over the past year, outperforming the industry growth of 85.4%, although it has lagged behind Celestica Inc. which increased by 197.7% [8]. - Despite positive stock performance, Sanmina faces challenges from supply chain disruptions, geopolitical issues, and intense competition in the electronics manufacturing services sector [9]. Group 4: Future Outlook - Sanmina is well-positioned for long-term growth due to its strong presence in multiple end markets and a focus on high-growth industries, supported by its global network and expertise in advanced electronics manufacturing [12]. - However, the company is likely to face pressure on bottom-line growth due to competition, supply chain issues, and high R&D costs affecting profitability [13].

Industry Overview - The electronics manufacturing services (EMS) industry is currently ranked in the top 3% of the Zacks Industry Rank, indicating strong performance and potential for growth [1] - The industry has delivered a remarkable 98.1% return over the past year and an astonishing 105.9% year-to-date return, suggesting it is expected to outperform the market in the next three to six months [2] Company Highlights Celestica Inc. (CLS) - Celestica is one of the largest EMS companies globally, focusing on high-value markets and product diversification, which is supported by strong R&D capabilities [7][8] - The company is experiencing robust growth in its Connectivity & Cloud Solutions segment, particularly in its Hyperscaler Portfolio Solutions and optical programs, driven by increasing demand for 800G and 400G network switches [9] - For 2025, Celestica anticipates revenues of approximately $12.2 billion, up from a previous estimate of $11.55 billion, with expected non-GAAP adjusted earnings of $5.90 per share [12] - The expected revenue and earnings growth rates for Celestica are 31.4% and 39%, respectively, for the next year, with a 15.6% improvement in the Zacks Consensus Estimate for next year's earnings [13] Jabil Inc. (JBL) - Jabil is a leading global supplier of EMS solutions, benefiting from strong momentum in capital equipment, AI-powered data center infrastructure, and digital commerce [14][15] - The company plans to invest $500 million to expand its manufacturing capabilities for the AI data center vertical, enhancing its position in the AI hardware supply chain [17] - Jabil's projected revenues for fiscal 2026 are $32.4 billion, with expected non-GAAP earnings per share of $11.55 and over $1.3 billion in adjusted free cash flow [22] - The expected revenue and earnings growth rates for Jabil are 8.8% and 18.5%, respectively, for the current year, with a 4.5% improvement in the Zacks Consensus Estimate for the current year's earnings [23] Sanmina Corp. (SANM) - Sanmina is a global provider of electronics contract manufacturing services, focusing on complex components and end-to-end supply chain solutions across various industries [24] - The company is benefiting from strong demand in communications networks, cloud, and AI infrastructure, with a vertically integrated manufacturing process that streamlines operations and reduces costs [25][26] - For the first quarter of fiscal 2026, Sanmina expects revenues between $2.05 billion and $2.15 billion, with non-GAAP earnings per share estimated between $1.95 and $2.25 [28] - The expected revenue and earnings growth rates for Sanmina are 72.2% and 59.6%, respectively, for the current year, with a 38.9% improvement in the Zacks Consensus Estimate for the current year's earnings [29]

Core Insights - Sanmina Corporation (SANM) is focusing on 42Q connected manufacturing to enhance data integration from global factories and suppliers, improving decision-making and visibility across manufacturing processes [1][3] Group 1: 42Q Connected Manufacturing - The unified data ecosystem consolidates supply data into a single manufacturing data lake, enabling faster planning and improved responsiveness to market changes [2] - Real-time data analytics optimize inventory, reduce downtime, and enhance order flow, while also improving quality monitoring to respond quickly to deviations [2] - Sanmina has implemented 42Q in over 70 factories across 15 countries, connecting more than 35,000 manufacturing devices in the cloud [3] Group 2: Competitive Landscape - Sanmina faces competition from Jabil, Inc. (JBL) and Celestica Inc. (CLS) in the electronic manufacturing services sector [4][5] - Jabil reported revenues of $8.3 billion, up from $6.96 billion year-over-year, driven by demand in healthcare, packaging, and AI-related sectors [4] - Celestica's quarterly revenues reached $3.19 billion, a 27.8% increase year-over-year, supported by strong demand for networking products and AI-driven data center investments [5] Group 3: Financial Performance and Valuation - Sanmina's stock has increased by 104.1% over the past year, slightly below the industry's growth of 105% [6] - The company trades at a forward price-to-sales ratio of 0.58, which is lower than the industry average of 0.89 [7] - The Zacks Consensus Estimate for Sanmina's earnings for 2025 has increased by 38.9% over the past 60 days [8]

Core Insights - Sanmina Corporation is transitioning from a low-margin electronics manufacturer to a significant player in the AI hardware sector, indicating a strategic shift towards higher-margin opportunities [1] Company Analysis - Sanmina's increasing involvement in AI positions it as a potential leader in the growing AI hardware market, reflecting a robust financial profile and a focus on innovation [1] - The company employs a quantamental analysis approach, combining data-driven models with fundamental research to identify investment opportunities [1] Investment Thesis - The article emphasizes the importance of making unique investment ideas accessible to both retail and professional investors, highlighting the analytical depth of the research conducted on Sanmina [1]