A month has gone by since the last earnings report for Sanmina (SANM) . Shares have added about 10.5% in that time frame, outperforming the S&P 500.But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Sanmina due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for Sanmina Corporation before we dive into how investors and analysts have reacted as of lat ...

Company Overview - Qualcomm Technologies Inc. and Sanmina Corporation are significant players in the semiconductor and electronics supply chain, with Qualcomm focusing on high-performance chip designs and Sanmina on electronics manufacturing services [1][2] - Qualcomm's product offerings include Snapdragon systems-on-chip, FastConnect Wi-Fi and Bluetooth systems, and a comprehensive intellectual property portfolio covering 4G, 5G, and IoT technologies [1] - Sanmina specializes in engineering and fabricating complex components, providing end-to-end supply chain solutions to Original Equipment Manufacturers across various markets [2] Qualcomm's Competitive Position - Qualcomm is investing in a licensing program for mobile, leveraging multi-core CPUs and Snapdragon mobile platforms to enhance performance and power efficiency [3] - The acquisition of Alphawave Semi allows Qualcomm to expand into high-growth applications such as data centers and AI [3] - Qualcomm is transitioning from a wireless communications firm to a connected processor company, gaining traction in EDGE networking and vehicle-to-everything (V2X) communication systems [4] Challenges Facing Qualcomm - Qualcomm faces intense competition from Intel in the AI PC market, which has impacted its near-term opportunities [5] - Supply constraints due to memory suppliers prioritizing AI data center demand are adversely affecting Qualcomm's handset revenues [5] - The company's operations in China are likely to be impacted by U.S.-China trade tensions, further complicating its revenue outlook [5] Sanmina's Competitive Position - Sanmina is focusing on 42Q connected manufacturing, integrating data from global factories to enhance visibility and decision-making [6] - The company has implemented 42Q connected manufacturing in over 70 factories across 15 countries, connecting more than 35,000 manufacturing equipment pieces [6] - Sanmina's end-to-end solutions streamline processes and lower costs, allowing for greater economies of scale [9] Financial Performance and Estimates - Sanmina is projected to see fiscal 2026 sales increase by 67.9% and EPS by 66.6%, with estimates rising 4.4% in the last 60 days [7][12] - In contrast, Qualcomm's fiscal 2026 sales are expected to decline by 0.2%, with EPS decreasing by 6.5% [11][12] - Qualcomm's stock has decreased by 18.6% year-over-year, while Sanmina has surged by 62.1% over the same period [14] Valuation Comparison - Qualcomm's shares trade at a price/sales ratio of 3.44, significantly higher than Sanmina's 0.55, indicating that Qualcomm appears more expensive from a valuation standpoint [16] - Sanmina's stronger growth estimates and cheaper valuation position it as a more attractive investment option compared to Qualcomm [19] Investment Outlook - Sanmina holds a Zacks Rank of 1 (Strong Buy), while Qualcomm has a Zacks Rank of 5 (Strong Sell), suggesting a more favorable investment outlook for Sanmina [18][19]

Key Takeaways Sanmina delivers advanced automotive electronics, from ECUs to LED lighting and climate modules.The company supports EV growth with power management, battery subsystems and charging systems.Partnerships with OEMs like Ather Energy enhance Sanmina's role in smart and connected vehicles.Sanmina Corporation (SANM) is a key provider in the automotive electronics sector, delivering advanced designs, manufacturing, testing and supply chain solutions to global original equipment manufacturers (OEMs) ...

Company Overview - Sanmina Corporation is a global provider of electronics contract manufacturing services, focusing on engineering and fabricating complex components, as well as providing complete end-to-end supply chain solutions to Original Equipment Manufacturers across various end markets, including industrial, medical, defense and aerospace, automotive, communications, and cloud infrastructure [11]. Investment Potential - Sanmina (SANM) holds a 1 (Strong Buy) rating on the Zacks Rank, indicating strong investment potential [12]. - The company has a VGM Score of A, suggesting it combines attractive value, growth, and momentum characteristics [12]. - SANM is projected to experience year-over-year earnings growth of 66.6% for the current fiscal year, making it a top pick for growth investors [12]. - Recent upward revisions in earnings estimates by two analysts for fiscal 2026 have increased the Zacks Consensus Estimate by $0.42 to $10.06 per share [12]. - The company boasts an average earnings surprise of +6.8%, further indicating its strong performance potential [12]. Summary of Style Scores - Sanmina has a Growth Style Score of A, reflecting its strong financial health and positive future outlook [12]. - The combination of a solid Zacks Rank and top-tier Growth and VGM Style Scores positions SANM favorably for investors [13].

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]

Core Insights - The acquisition of ZT Systems has significantly benefited Sanmina, resulting in a doubling of its shares within a specific timeframe [1]. Group 1: Company Performance - Sanmina's shares have doubled since the acquisition of ZT Systems, indicating a successful integration and positive market response [1]. Group 2: Investment Opportunities - The service "Value in Corporate Events" provides insights into major corporate events such as earnings reports, M&A, and IPOs, aiming to identify actionable investment opportunities [1].

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].

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]

Core Insights - Sanmina Corporation (SANM) reported strong first-quarter fiscal 2026 results, with revenues increasing by 59% year over year to $3.19 billion, surpassing the Zacks Consensus Estimate by $90 million [2][4][9] - The company’s net income on a GAAP basis was $49.3 million or $0.89 per share, down from $65 million or $1.16 per share in the prior-year quarter, while non-GAAP net income rose to $132.4 million or $2.38 per share, exceeding the consensus estimate of $2.15 [3][9] Revenue Performance - The Integrated Manufacturing Solutions segment generated $2.79 billion in revenues, a 72.2% increase year over year, contributing 87.5% to total revenues [5][9] - Revenues from Communications Networks and Cloud & AI Infrastructure surged to $1.964 billion from $737 million, while revenues from Industrial & Energy, Medical, Defense & Aerospace, and Automotive & Transportation declined to $1.226 billion from $1.269 billion [6] Profitability Metrics - Non-GAAP gross profit increased to $297.9 million from $180.1 million in the year-ago quarter, driven by higher revenues and improved operational efficiency [7] - Non-GAAP operating income totaled $192 million, with an operating margin of 6%, slightly up from 5.6% in the prior-year quarter [7] Cash Flow and Shareholder Returns - Sanmina generated $178.7 million of net cash from operating activities, compared to $63.9 million in the year-ago quarter [8] - The company repurchased 0.5 million shares for $79 million during the quarter [8] Future Outlook - For the second quarter of fiscal 2026, revenues are expected to be in the range of $3.1 billion to $3.4 billion, with non-GAAP earnings per share estimated between $2.25 and $2.55 [10]

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