Sanmina's Q4 Results Exceed Revenue Expectations
Key Highlights:
* Q4 CY2024 revenue: $2.01 billion, surpassing analyst estimates of $1.98 billion (1.5% beat)
* Adjusted EPS: $1.44, above analyst consensus of $1.37 (5.1% beat)
* Q1 CY2025 revenue guidance: $1.95 billion, below analyst estimates of $1.99 billion
* Q1 CY2025 adjusted EPS guidance: $1.35, below analyst estimates of $1.42
Strong Revenue Growth and Profitability
Sanmina delivered solid financial results with revenue growth of 7% year-on-year. Non-GAAP EPS of $1.44 exceeded expectations, indicating strong profitability.
Challenges and Opportunities
Despite revenue guidance falling below analyst estimates for the next quarter, Sanmina highlights growth opportunities. The company emphasizes its consistent operating margin and cash generation.
Market and Industry Dynamics
Electrical systems companies benefit from trends such as connectivity and industrial automation. However, they remain susceptible to economic cycles.
Sales Growth Analysis
Sanmina's sales have fluctuated over the past five years, indicating inconsistent demand. However, the company projects 6.3% year-on-year revenue growth for the next quarter.
Operating Margin and Profitability
Sanmina's operating margin has remained stable over the past five years. In Q4, the company maintained a 4.4% operating margin, unchanged from the same quarter last year.
Earnings per Share
Sanmina's EPS has grown at a 10% compounded annual growth rate over the last five years, due in part to stock buybacks. EPS in Q4 exceeded estimates by 5.1%, while Wall Street anticipates 15.8% growth for the full-year EPS.
Key Takeaways
* Sanmina exceeded revenue expectations but provided conservative guidance for the next quarter.
* The company's profitability remains strong, but growth opportunities need to be captured.
* Investors should consider Sanmina's valuation and business qualities before making investment decisions.
For a comprehensive analysis, refer to our full research report available free of charge.