Sanmina Stock Pops After Strong Results

Sanmina (NASDAQ:SANM) is a San José-based company that provides integrated manufacturing solutions, components, products and repair, logistics, and after-market services around the world. The stock enjoyed a solid bump in after-hours trading following the release of its first batch of fiscal 2024 results. What had investors excited in late January? Let’s jump in.

The company released its first quarter (Q1) fiscal 2024 earnings after markets closed on Monday, January 29. Sanmina reported total revenue of $1.87 billion, and GAAP diluted earnings per share (EPS0 of $0.98. It posted cash flow from operations of $126 million and ending cash and cash equivalents of $632 million. Moreover, it repurchased 2.1 million shares for a total of $106 million.

Investors also got a look at the company’s second quarter fiscal 2024 outlook. Sanmina projected total revenue between $1.825 billion and $1.925 billion for Q2 FY2024. Meanwhile, the company expects GAAP EPS between $0.95 and $1.05. Overall, Sanmina’s leadership expects earnings to be largely flat in the second quarter compared to the first.

Shares of Sanmina have dropped 3.3% week-over-week as of close on Monday, January 29. The stock has increased marginally so far in 2024. Meanwhile, its shares have declined 8.8% in the year-over-year period. Sanmina stock currently possesses a favourable price-to-earnings ratio of 9.7. Its earnings are also well-positioned to deliver strong growth going forward. Better yet, it boasts an immaculate balance sheet.