Electronics manufacturing services company Sanmina (NASDAQ:SANM) will be announcing earnings results tomorrow after market close. Here’s what to expect.
Sanmina beat analysts’ revenue expectations by 1.5% last quarter, reporting revenues of $2.01 billion, up 7% year on year. It was a mixed quarter for the company, with a decent beat of analysts’ EPS estimates but EPS guidance for next quarter missing analysts’ expectations significantly.
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 7.1% year on year to $1.97 billion, a reversal from the 20.9% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.38 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 Q1 results, giving us a hint as to what we can expect. Allegion delivered year-on-year revenue growth of 5.4%, beating analysts’ expectations by 2%, and Vertiv reported revenues up 24.2%, topping estimates by 5.2%. Allegion traded up 7.9% following the results while Vertiv was also up 16.8%.
Read our full analysis of Allegion’s results here and Vertiv’s results here.
Investors in the electrical systems segment have had fairly steady hands going into earnings, with share prices down 1.4% on average over the last month. Sanmina is up 7.6% during the same time and is heading into earnings with an average analyst price target of $91 (compared to the current share price of $82).
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