The 10-second takeaway
For the quarter ended March 30 (Q2), Sanmina met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly. Non-GAAP earnings per share grew. GAAP earnings per share grew.
Gross margins contracted, operating margins dropped, net margins expanded.
Sanmina booked revenue of $1.43 billion. The seven analysts polled by S&P Capital IQ expected sales of $1.42 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.30. The seven earnings estimates compiled by S&P Capital IQ forecast $0.29 per share. Non-GAAP EPS of $0.30 for Q2 were 11% higher than the prior-year quarter's $0.27 per share. GAAP EPS were $0.25 for Q2 compared to -$0.02 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 7.0%, 30 basis points worse than the prior-year quarter. Operating margin was 2.4%, 10 basis points worse than the prior-year quarter. Net margin was 1.5%, 160 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.47 billion. On the bottom line, the average EPS estimate is $0.35.
Next year's average estimate for revenue is $5.91 billion. The average EPS estimate is $1.34.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 130 members out of 157 rating the stock outperform, and 27 members rating it underperform. Among 50 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 42 give Sanmina a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Sanmina is outperform, with an average price target of $11.14.
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