A Preview Of Sanmina's Earnings

Sanmina SANM will be releasing its next round of earnings this Monday, May 03. For all of the relevant information, here is your guide for Monday's Q2 earnings announcement.

Net Income, Earnings, And Earnings Per Share

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Based on management's projections, Sanmina analysts model for earnings of $0.83 per share on sales of $1.71 billion. In the same quarter last year, Sanmina reported EPS of $0.32 on revenue of $1.59 billion.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to match the consensus estimate when it reports Monday, EPS would be up 159.38%. Sales would be up 7.48% from the year-ago period. Here is how the company's reported EPS has compared to analyst estimates in the past:

Stock Performance

Over the last 52-week period, shares are up 54.17%. Given that these returns are generally positive, long-term shareholders can relax going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.

Do not be surprised to see the stock move on comments made during its conference call. Sanmina is scheduled to hold the call at 17:00:00 ET and can be accessed here.