Sanmina shares slip 5% as Q3 earnings and revenue miss estimates, guidance disappoints

SAN JOSE, Calif. – Sanmina Corporation (NASDAQ: SANM), a prominent manufacturing solutions company, reported its fiscal third-quarter earnings, revealing a slight miss in both earnings per share (EPS) and revenue compared to analyst expectations. Following the earnings release, Sanmina shares experienced a drop of 5%.

For the quarter ended June 29, 2024, Sanmina posted an adjusted EPS of $1.25, falling short of the consensus estimate of $1.28. Revenue for the quarter was reported at $1.84 billion, also below the anticipated $1.86 billion.

The company’s financial performance reflects a decrease in revenue compared to the same period last year, which saw higher revenue figures of $2.21 billion. This year-over-year (YoY) decline underscores the challenges faced by the company in a competitive and dynamic market.

Looking forward, Sanmina provided guidance for the fourth quarter of 2024, estimating an adjusted EPS range of $1.30 to $1.40. This projection falls below the analyst consensus of $1.43. The company also anticipates fourth-quarter revenue to be between $1.9 billion and $2.0 billion, which again is short of the expected $2.01 billion consensus.

Jure Sola, Chairman and Chief Executive Officer of Sanmina, commented on the results, “We delivered third quarter results in line with our outlook. We are starting to see stabilization and demand improve going into our fourth quarter, and we expect to see growth in fiscal 2025.” Sola’s statement reflects a cautious optimism for the company’s future performance despite the current quarter’s shortfall.

Sanmina’s financial health remains stable, with the company reporting $658 million in cash and cash equivalents by the end of the quarter. The company’s commitment to executing its strategy, focusing on profitable growth, and generating free cash flow while maintaining a robust balance sheet was reiterated by the CEO as key to delivering value to shareholders.

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