A Glimpse of Sanmina's Earnings Potential

Sanmina SANM is set to give its latest quarterly earnings report on Monday, 2025-04-28. Here's what investors need to know before the announcement.

Analysts estimate that Sanmina will report an earnings per share (EPS) of $1.38.

Sanmina bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Earnings Track Record

In the previous earnings release, the company beat EPS by $0.07, leading to a 3.2% increase in the share price the following trading session.

Here's a look at Sanmina's past performance and the resulting price change:

Sanmina Share Price Analysis

Shares of Sanmina were trading at $80.26 as of April 24. Over the last 52-week period, shares are up 25.06%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Analyst Insights on Sanmina

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Sanmina.

The consensus rating for Sanmina is Neutral, derived from 1 analyst ratings. An average one-year price target of $92.0 implies a potential 14.63% upside.

Analyzing Ratings Among Peers

In this comparison, we explore the analyst ratings and average 1-year price targets of Plexus, IPG Photonics and TTM Technologies, three prominent industry players, offering insights into their relative performance expectations and market positioning.

• Analysts currently favor an Buy trajectory for Plexus, with an average 1-year price target of $161.0, suggesting a potential 100.6% upside.
• Analysts currently favor an Buy trajectory for IPG Photonics, with an average 1-year price target of $73.67, suggesting a potential 8.21% downside.
• Analysts currently favor an Buy trajectory for TTM Technologies, with an average 1-year price target of $33.0, suggesting a potential 58.88% downside.

Key Findings: Peer Analysis Summary

The peer analysis summary provides a snapshot of key metrics for Plexus, IPG Photonics and TTM Technologies, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.

Key Takeaway:

Sanmina ranks at the top for Revenue Growth among its peers. It is in the middle for Gross Profit. Sanmina is at the bottom for Return on Equity.

Unveiling the Story Behind Sanmina

Sanmina Corp is a provider of integrated manufacturing solutions, components, and after-market services to original equipment manufacturers in the communications networks, storage, industrial, defense and aerospace end markets. The operations are managed as two businesses: Integrated Manufacturing Solutions, which consists of printed circuit board assembly and represents a majority of the firm's revenue; and Components, Products, and Services, which includes interconnect systems and mechanical systems. The firm generates revenue primarily in the United States, China, and Mexico, but has a presence around the world.

Sanmina's Financial Performance

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Positive Revenue Trend: Examining Sanmina's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 7.02% as of 31 December, 2024, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Information Technology sector.

Net Margin: Sanmina's net margin excels beyond industry benchmarks, reaching 3.24%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Sanmina's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 2.92%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Sanmina's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 1.35%, the company showcases efficient use of assets and strong financial health.

Debt Management: Sanmina's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.14.

To track all earnings releases for Sanmina visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.