Electronics manufacturing services company Sanmina (NASDAQ: SANM) will be reporting results this Monday after market close. Here’s what to expect.
Sanmina beat analysts’ revenue expectations by 1% last quarter, reporting revenues of $1.98 billion, up 8.1% year on year. It was a slower quarter for the company, with revenue guidance for next quarter missing analysts’ expectations significantly and a significant miss of analysts’ EBITDA estimates.
Is Sanmina a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Sanmina’s revenue to grow 7.5% year on year to $1.98 billion, a reversal from the 16.6% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.42 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Sanmina has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Sanmina’s peers in the electrical equipment segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Acuity Brands delivered year-on-year revenue growth of 21.7%, beating analysts’ expectations by 3.1%, and Allegion reported revenues up 5.8%, topping estimates by 1.5%. Acuity Brands traded up 5.8% following the results while Allegion was also up 7.2%.
Read our full analysis of Acuity Brands’s results here and Allegion’s results here.
There has been positive sentiment among investors in the electrical equipment segment, with share prices up 6.7% on average over the last month. Sanmina’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $107.50 (compared to the current share price of $98.98).
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