Core Viewpoint - Sanmina Corporation has appointed Michael J. Loparco to its Board of Directors, effective March 10, 2025, bringing extensive experience in global manufacturing and supply chain management [1][4]. Company Overview - Sanmina Corporation is a Fortune 500 company recognized as a leading integrated manufacturing solutions provider in the global Electronics Manufacturing Services (EMS) market [5]. - The company serves various sectors including industrial, medical, defense and aerospace, automotive, communications networks, and cloud infrastructure [5]. Leadership Experience - Michael J. Loparco has over 25 years of experience in building and growing technical manufacturing businesses, including a recent role as CEO of Symbotic, where he led a successful IPO [2]. - Prior to Symbotic, he spent over two decades at Jabil Inc., where he held senior leadership positions, including CEO of the Electronics Manufacturing Services segment [2]. - His responsibilities at Jabil included driving growth, innovation, digital transformation, and managing complex supply chains [2]. Board Contributions - The Chairman and CEO of Sanmina, Jure Sola, expressed confidence that Loparco's leadership experience and track record in manufacturing and supply chain management will be beneficial for the company's future growth [4].

Core Viewpoint - Sanmina (SANM) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on the consensus measure of EPS estimates from sell-side analysts, reflecting the company's changing earnings picture [1][2]. - A strong correlation exists between changes in earnings estimates and near-term stock price movements, largely due to institutional investors adjusting their valuations based on these estimates [4][6]. Company Performance and Outlook - Sanmina is projected to earn $6.01 per share for the fiscal year ending September 2025, representing a year-over-year increase of 13.8% [8]. - Over the past three months, the Zacks Consensus Estimate for Sanmina has risen by 6.4%, indicating a positive trend in earnings expectations [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade of Sanmina to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting potential for higher stock prices in the near term [10].

Core Viewpoint - The article emphasizes the importance of value investing and highlights Sanmina (SANM) as a strong value stock based on various financial metrics [2][4][7] Group 1: Value Investing Strategy - Value investing is a popular strategy that utilizes fundamental analysis to identify undervalued stocks [2] - Zacks has developed a Style Scores system to categorize stocks, with a focus on the "Value" category for value investors [3] Group 2: Sanmina's Financial Metrics - Sanmina (SANM) holds a Zacks Rank of 1 (Strong Buy) and a Value grade of A, indicating strong potential [4] - The current P/E ratio for SANM is 13.18, significantly lower than the industry average of 18.41 [4] - SANM's Forward P/E has fluctuated between 9.58 and 14.08 over the past 52 weeks, with a median of 11.03 [4] - The PEG ratio for SANM is 0.99, compared to the industry's average PEG of 1.44, indicating favorable valuation [5] - Over the last 12 months, SANM's PEG has ranged from 0.71 to 1.55, with a median of 1.07 [5] - SANM has a P/S ratio of 0.59, which is slightly lower than the industry average of 0.63 [6] Group 3: Investment Outlook - The combination of these metrics suggests that Sanmina is likely undervalued, making it one of the strongest value stocks in the market [7]

Core Viewpoint - The article emphasizes the importance of value investing and highlights Sanmina (SANM) as a strong value stock based on its financial metrics and rankings [2][4][7]. Group 1: Company Overview - Sanmina (SANM) currently holds a Zacks Rank of 1 (Strong Buy) and a Value grade of A, indicating strong potential for investment [4]. - The stock is trading with a P/E ratio of 13.48, significantly lower than the industry average of 19.50 [4]. - Over the past 12 months, SANM's Forward P/E has fluctuated between a high of 13.57 and a low of 9.58, with a median of 10.90 [4]. Group 2: Financial Metrics - SANM has a PEG ratio of 1.10, which is lower than the industry average PEG of 1.52, suggesting it may be undervalued relative to its expected earnings growth [5]. - The stock's PEG has ranged from a high of 1.55 to a low of 0.71 over the past year, with a median of 1.07 [5]. - SANM's P/S ratio is 0.59, compared to the industry average P/S of 0.65, further indicating its potential undervaluation [6]. Group 3: Investment Outlook - The combination of SANM's strong earnings outlook and favorable financial metrics supports the conclusion that it is an impressive value stock at the moment [7].

Financial Performance - Net sales for the three months ended December 28, 2024, were $2,006,348, an increase of 7.0% compared to $1,874,798 for the same period in 2023[98]. - Gross profit for the same period was $167,915, up from $160,840 in the prior year, while gross margin decreased to 8.4% from 8.6%[98][100]. - Operating income increased to $88,610 for the three months ended December 28, 2024, compared to $87,576 for the same period in 2023[98]. - Net income attributable to common shareholders was $65,003 for the three months ended December 28, 2024, compared to $57,068 in the prior year[98]. Segment Performance - Sales in the Communications Networks and Cloud Infrastructure segment increased by 19.2% to $737,010, while Industrial, Medical, Defense and Aerospace, and Automotive sales rose by 1.0% to $1,269,338[99]. Expenses and Taxation - Selling, general and administrative expenses rose to $71 million for the three months ended December 28, 2024, from $65 million in the prior year, maintaining 3.5% of net sales[102]. - The provision for income taxes decreased to $15 million (18% of income before taxes) for the three months ended December 28, 2024, down from $21 million (26% of income before taxes) in the prior year[103]. Cash Flow and Liquidity - Cash and cash equivalents increased to $642 million as of December 28, 2024, compared to $626 million at September 28, 2024[108]. - Net cash provided by operating activities was $63,938 for the three months ended December 28, 2024, down from $126,025 in the prior year[104][109]. - Working capital increased to $2.0 billion as of December 28, 2024, compared to $1.9 billion at September 28, 2024[108]. - For the three months ended December 28, 2024, the company generated $124 million of cash from earnings, excluding non-cash items, compared to $109 million for the same period in 2023, reflecting a 13.8% increase[110][111]. - The company believes its existing cash resources and other sources of liquidity will be sufficient to meet working capital requirements for at least the next twelve months[123]. Investment and Financing Activities - The net cash used in investing activities was $17 million for the three months ended December 28, 2024, down from $35 million in the same period of 2023, indicating a 51.4% decrease[112]. - The net cash used in financing activities decreased to $29 million for the three months ended December 28, 2024, from $128 million in the same period of 2023, representing a 77.3% reduction[113]. - The company repurchased 0.2 million shares for $16 million during the three months ended December 28, 2024, compared to 2 million shares for $106 million in the same period of 2023, a decrease of 98.1% in shares repurchased[114]. Accounts Receivable and Liabilities - The company sold approximately $34 million of accounts receivable under its receivables sales programs for the three months ended December 28, 2024, a significant decrease from $407 million in the same period of 2023, reflecting an 91.6% decline[118]. - The maximum amount of sold receivables that could be outstanding under the Receivables Purchase Agreement is $490 million, as of December 28, 2024[115]. - As of December 28, 2024, the company had accrued liabilities of $37 million related to legal proceedings and other contingencies[120]. - The company had a liability of $55 million for uncertain tax positions as of December 28, 2024, based on subjective assessments of potential tax obligations[121].

Core Insights - Sanmina Corporation (NASDAQ: SANM) recently reported its Q1 '25 earnings, highlighting a need to analyze the numbers and consider the short-term outlook and associated concerns [1] Financial Performance - The earnings report indicates significant uncertainty surrounding the company's financial performance, which may impact investor sentiment [1] Investment Perspective - The company is viewed as a long-term investment opportunity, with a typical investment horizon of 5-10 years, focusing on a balanced portfolio that includes growth, value, and dividend-paying stocks [1]

Group 1 - Sanmina Corporation is positioned as a leading integrated manufacturing solutions provider based in California [1] - The company’s name is a blend, which adds a unique aspect to its identity in the tech industry [1] Group 2 - Grassroots Trading focuses on providing objective and unbiased research, particularly on small- to mid-cap companies [1] - The firm aims to identify compelling investment opportunities that are often overlooked, while also covering larger companies periodically [1]

January 27, 2025 Today's Presenters Jure Sola Chairman & CEO Jon Faust EVP & CFO 2 Q1 Fiscal 2025 Financial Results Safe Harbor Statement Certain statements made during this presentation, including our financial outlook for the second quarter fiscal 2025 and expectations for fiscal 2025 generally, constitute forward-looking statements within the meaning of the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934. Actual results could differ materially from those projected in these st ...

Sanmina (SANM) came out with quarterly earnings of $1.44 per share, beating the Zacks Consensus Estimate of $1.37 per share. This compares to earnings of $1.30 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 5.11%. A quarter ago, it was expected that this electronics manufacturing services company would post earnings of $1.37 per share when it actually produced earnings of $1.43, delivering a surprise of 4.38%.Over the last fo ...

Revenue and Earnings - Revenue for Q1 FY25 was $2.01 billion, an increase from $1.87 billion in Q1 FY24, representing a growth of approximately 6.8% year-over-year[15]. - Non-GAAP diluted EPS for Q1 FY25 was $1.44, compared to $1.30 in Q1 FY24, reflecting a year-over-year increase of about 10.8%[17]. - The company reported a net income attributable to common shareholders of $65 million for Q1 FY25, up from $57 million in Q1 FY24, marking a growth of approximately 14%[15]. - The outlook for Q2 FY25 projects revenue between $1.9 billion and $2.0 billion, with GAAP diluted EPS expected to range from $1.03 to $1.13[6]. Cash Flow and Financial Management - Cash flow from operations for Q1 FY25 was $64 million, with free cash flow reported at $47 million[5]. - Cash provided by operating activities in Q1'25 was $63,938 million, up 23.3% from $51,875 million in Q4'24[21]. - Free cash flow for Q1'25 was $47,017 million, representing a 60.3% increase compared to $29,278 million in Q4'24[21]. - Cash used in financing activities decreased to $28,831 million in Q1'25 from $60,412 million in Q4'24, reflecting improved cash management[21]. Shareholder Returns and Capital Allocation - The company has authorized an additional $300 million for its share repurchase program, with approximately $37 million remaining under the current program as of December 28, 2024[3]. - The company executed net share repurchases of $24,456 million in Q1'25, down from $60,412 million in Q4'24, indicating a strategic shift in capital allocation[21]. Operational Performance - GAAP operating margin for Q1 FY25 was 4.4%, consistent with the previous quarter, while non-GAAP operating margin improved to 5.6%[17]. - Sanmina continues to express confidence in fiscal 2025 being a growth year, driven by operational discipline and customer service capabilities[2]. Asset Management - Total assets as of December 28, 2024, were $4.81 billion, slightly down from $4.82 billion at the end of the previous quarter[13]. - The company’s ending cash and cash equivalents increased to $642 million from $625 million in the previous quarter[13]. - Net change in cash and cash equivalents for Q1'25 was $16,542 million, a significant recovery from a decrease of $31,849 million in Q4'24[21]. - The company reported a net change in net working capital of $(59,945) million in Q1'25, an improvement from $(77,229) million in Q4'24[21]. Depreciation and Capital Expenditures - Depreciation expense for Q1'25 was $31,845 million, slightly up from $31,654 million in Q4'24[21]. - Net purchases of property and equipment decreased to $16,921 million in Q1'25 from $22,597 million in Q4'24, indicating a reduction in capital expenditures[21]. Currency Impact - The effect of exchange rate changes resulted in a loss of $(1,344) million in Q1'25, compared to a gain of $2,585 million in Q4'24, highlighting currency volatility impacts[21].