Sanmina (NASDAQ:SANM) Shares Gap Up Following Earnings Beat

Shares of Sanmina Corporation (NASDAQ:SANM) gapped up before the market opened on Tuesday after the company announced better than expected quarterly earnings. The stock had previously closed at $149.64, but opened at $166.40. Sanmina shares last traded at $165.2470, with a volume of 754,675 shares traded.

The electronics maker reported $4.43 EPS for the quarter, topping the consensus estimate of $3.27 by $1.16. Sanmina had a return on equity of 19.08% and a net margin of 2.41%. The company had revenue of $3.86 billion for the quarter, compared to analyst estimates of $3.48 billion. During the same quarter in the previous year, the company posted $1.67 earnings per share. The firm’s revenue was up 84.0% compared to the same quarter last year. Sanmina has set its Q1 2027 guidance at 3.500-3.850 EPS and its FY 2027 guidance at 15.500-17.500 EPS.

Sanmina News Summary

Here are the key news stories impacting Sanmina this week:

• Positive Sentiment: Sanmina reported Q4 adjusted EPS of $4.43, beating the $3.27 consensus, while revenue of $3.86 billion topped the $3.48 billion estimate and rose 84% year over year. Article: Sanmina Beats Q4 Earnings and Revenue Estimates
• Positive Sentiment: The company forecast fiscal 2027 revenue of $17.5 billion–$19.5 billion, above the $16.7 billion consensus, and EPS of $15.50–$17.50, above the $13.90 estimate. Its Q1 EPS outlook also exceeded expectations. Article: Sanmina Outlines FY 2027 Revenue Guidance
• Positive Sentiment: Management expects cloud and AI systems revenue to reach $7.5 billion–$9.0 billion in FY2027, reinforcing investor optimism about the company’s exposure to accelerating data-center demand. Article: Sanmina’s Manufacturing Business and AI Opportunity
• Neutral Sentiment: Coverage notes that Sanmina’s current earnings strength is primarily driven by its broader manufacturing business; AI may become a larger growth driver over time, but that opportunity is still developing. Article: Sanmina’s Manufacturing Business and Future AI Opportunity

Analyst Ratings Changes

A number of equities analysts have recently commented on SANM shares. Zacks Research cut shares of Sanmina from a “strong-buy” rating to a “hold” rating in a report on Monday, September 28th. Weiss Ratings cut shares of Sanmina from a “buy (b)” rating to a “buy (b-)” rating in a research note on Friday, September 18th. JPMorgan Chase & Co. lowered their price objective on shares of Sanmina from $275.00 to $260.00 and set a “neutral” rating on the stock in a research report on Tuesday, July 28th. Finally, Wall Street Zen upgraded shares of Sanmina from a “buy” rating to a “strong-buy” rating in a research note on Sunday, October 11th. Two research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and an average target price of $198.33.

Hedge Funds Weigh In On Sanmina

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Edgestream Partners L.P. acquired a new position in Sanmina in the 3rd quarter valued at $850,000. Teachers Retirement System of The State of Kentucky lifted its stake in shares of Sanmina by 13.3% in the 3rd quarter. Teachers Retirement System of The State of Kentucky now owns 28,025 shares of the electronics maker’s stock worth $6,023,000 after acquiring an additional 3,289 shares during the period. Hantz Financial Services Inc. lifted its stake in shares of Sanmina by 18.3% in the 3rd quarter. Hantz Financial Services Inc. now owns 2,030 shares of the electronics maker’s stock worth $436,000 after acquiring an additional 314 shares during the period. Royce & Associates LP boosted its holdings in shares of Sanmina by 3.1% in the third quarter. Royce & Associates LP now owns 60,013 shares of the electronics maker’s stock valued at $12,897,000 after acquiring an additional 1,821 shares in the last quarter. Finally, Virtus Advisers LLC boosted its holdings in shares of Sanmina by 21.4% in the third quarter. Virtus Advisers LLC now owns 6,288 shares of the electronics maker’s stock valued at $1,351,000 after acquiring an additional 1,109 shares in the last quarter. 92.71% of the stock is currently owned by hedge funds and other institutional investors.

Sanmina Trading Up 11.6%

The company has a debt-to-equity ratio of 0.71, a current ratio of 1.78 and a quick ratio of 1.06. The business’s 50 day moving average price is $192.37 and its 200-day moving average price is $190.56. The firm has a market capitalization of $8.95 billion, a price-to-earnings ratio of 29.55, a price-to-earnings-growth ratio of 0.40 and a beta of 1.72.

About Sanmina

Sanmina Corporation is a provider of integrated manufacturing solutions for companies that develop complex electronic, optical, and electromechanical products. Its services span product design and engineering, supply-chain management, manufacturing, and logistics, as well as repair and other aftermarket support.

The company serves customers in markets that include communications networks, cloud and data-center infrastructure, medical and life sciences, automotive, industrial equipment, and aerospace and defense.