Sanmina (SANM) Q3 Earnings: What To Expect

Electronics manufacturing services company Sanmina (NASDAQ:SANM) will be reporting earnings this Monday afternoon. Here’s what investors should know.

Sanmina beat analysts’ revenue expectations by 3.1% last quarter, reporting revenues of $2.04 billion, up 10.9% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ revenue estimates but a significant miss of analysts’ EBITDA estimates.

Is Sanmina a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Sanmina’s revenue to grow 1.7% year on year to $2.05 billion, a reversal from the 1.7% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.57 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Sanmina has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time since going public by 1.9% on average.

Looking at Sanmina’s peers in the electrical systems segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Vertiv delivered year-on-year revenue growth of 29%, beating analysts’ expectations by 3.4%, and Verra Mobility reported revenues up 16.1%, topping estimates by 9.8%. Vertiv traded up 4.6% following the results while Verra Mobility was down 1.3%.

Read our full analysis of Vertiv’s results here and Verra Mobility’s results here.

Investors in the electrical systems segment have had steady hands going into earnings, with share prices flat over the last month. Sanmina is up 20.9% during the same time and is heading into earnings with an average analyst price target of $158.50 (compared to the current share price of $137.87).

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