Sanmina (SANM) Reports Earnings Tomorrow: What To Expect

StockStory
01-26
Sanmina (SANM) Reports Earnings Tomorrow: What To Expect

Electronics manufacturing services company Sanmina (NASDAQ:SANM) will be announcing earnings results tomorrow after the bell. Here’s what to look for.

Sanmina beat analysts’ revenue expectations by 2.9% last quarter, reporting revenues of $2.02 billion, down 1.7% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EPS estimates.

Is Sanmina a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Sanmina’s revenue to grow 5.5% year on year to $1.98 billion, a reversal from the 20.4% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.37 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Sanmina has missed Wall Street’s revenue estimates four times over the last two years.

Looking at Sanmina’s peers in the electrical systems segment, some have already reported their Q4 results, giving us a hint as to what we can expect. OSI Systems delivered year-on-year revenue growth of 12.5%, beating analysts’ expectations by 3.2%, and LSI reported revenues up 35.5%, topping estimates by 14.3%. OSI Systems traded up 18.4% following the results while LSI was also up 11.7%.

Read our full analysis of OSI Systems’s results here and LSI’s results here.

There has been positive sentiment among investors in the electrical systems segment, with share prices up 6.3% on average over the last month. Sanmina is up 11.1% during the same time and is heading into earnings with an average analyst price target of $71 (compared to the current share price of $84.05).

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