Why Is Electronics Manufacturing Services Company Sanmina Stock Trading Higher Today?

Sanmina Corp SANM shares are trading higher premarket today after the company reported first-quarter FY24 results.

Revenue of $1.875 billion beat the consensus of $1.870 billion. Adjusted EPS of $1.30 surpassed the consensus of $1.22.

Adjusted operating margin of 5.5% came below the prior-year quarter figure of 6.0%. The company bought back 2.1 million shares for $106 million in the quarter.

As of December 31, cash and cash equivalents stood at $632 million. Operating cash flow stood at $126 million in the first quarter.

“Our team did a great job delivering first quarter financial results in line with our outlook. We are confident in our market-focused strategy and continue to position the company for long-term financial success,” stated Jure Sola, Chairman and Chief Executive Officer.

“Our outlook for the second quarter is essentially flat with the prior quarter and is in line with our expectations for the first half of fiscal 2024. We believe we will see sequential improvement as we move into the second half of the year.”

Q2 FY24 Outlook: The company reported revenue of $1.825 billion-$1.925 billion (vs. consensus of $1.8 billion) and adjusted EPS of $1.20-$1.30 (vs. consensus of $1.09).

Price Action: SANM shares are up 15.76% to $58.61 premarket on the last check Tuesday.