Sanmina (SANM) Misses Q3 Earnings and Revenue Estimates

Core Viewpoint - Sanmina reported quarterly earnings that missed expectations, indicating potential challenges ahead for the company despite its strong year-to-date stock performance [1][8][12]. Financial Performance - Sanmina's revenues for the quarter ended June 2024 were $1.84 billion, missing the Zacks Consensus Estimate by 0.19% and down from $2.21 billion year-over-year [2]. - The company posted earnings of $1.25 per share, which was below the Zacks Consensus Estimate of $1.30 per share and down from $1.55 per share a year ago [8]. - The current consensus EPS estimate for the upcoming quarter is $1.50 on revenues of $1.97 billion, and for the current fiscal year, it is $5.40 on revenues of $7.52 billion [5]. Stock Performance - Sanmina shares have increased approximately 44.7% since the beginning of the year, significantly outperforming the S&P 500's gain of 14.5% [3]. - The company has surpassed consensus EPS estimates two times over the last four quarters [9]. Earnings Outlook - The estimate revisions trend for Sanmina is currently mixed, leading to a Zacks Rank of 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [12]. - The sustainability of the stock's price movement will largely depend on management's commentary during the earnings call [10]. Industry Context - The Electronics - Manufacturing Services industry, to which Sanmina belongs, is currently ranked in the top 41% of over 250 Zacks industries, indicating a favorable outlook compared to lower-ranked industries [13].