Sanmina Q2 Earnings Surpass Estimates on Higher Revenues

Sanmina Corporation SANM reported strong second-quarter fiscal 2025 results, with adjusted earnings and revenues surpassing the Zacks Consensus Estimate. The California-based global electronics manufacturing services provider reported a top-line expansion year over year, owing to healthy momentum across all segments. Strong growth in free cash flow is a positive.SANM’s Net IncomeNet income on a GAAP basis in the quarter was $64.2 million or $1.16 per share compared with $52.5 million or 93 cents per share in the prior-year quarter. Top-line expansion supported growth in net income.Non-GAAP net income in the reported quarter was $78 million or $1.41 per share compared with $73.9 million or $1.30 in the prior-year quarter. The bottom line surpassed the Zacks Consensus Estimate of $1.38. (See the Zacks Earnings Calendar to stay ahead of market-making news.)Sanmina Corporation Price, Consensus and EPS Surprise Sanmina Corporation price-consensus-eps-surprise-chart | Sanmina Corporation QuoteSANM’s RevenuesNet sales during the quarter increased to $1.98 billion from $1.83 billion reported in the year-ago quarter, primarily driven by growth across multiple end markets. The top line beat the consensus estimate by $34 million. In the fiscal second quarter, Integrated Manufacturing Solutions generated $1.59 billion in revenues, up 9.7% year over year. The segment contributed 80.2% to revenues. Solid sales growth was primarily driven by the communications networks and cloud infrastructure end markets.Components, Products and Services revenues increased to $391.9 million from $382.9 million in the prior-year quarter, backed by growth in several end markets.End-market wise, Industrial & Energy, Medical, Defense & Aerospace, and Automotive markets generated $1.25 billion in revenues compared with $1.23 billion in the prior-year quarter. The company generated $732.9 million from Communications Networks and Cloud Infrastructure compared with $609.3 million in the year-ago quarter.SANM’s Other DetailsGross profit was $176.2 million compared with $154.8 million in the year-ago quarter. The improvement is driven by a favorable mix and improved operational efficiency. Non-GAAP operating income totaled $110.6 million compared with $99.5 million in the year-ago period. Non-GAAP operating margin was 5.6%, marginally up from 5.4% in the prior-year quarter.SANM’s Cash Flow & LiquidityIn the second quarter of fiscal 2025, Sanmina generated $156.9 million of net cash from operating activities compared with $72.3 million in the previous year’s quarter. As of March 29, 2025, the company had $647.1 million in cash and cash equivalents and $291.4 million in long-term debt. During the quarter, the company repurchased approximately 1.03 million shares for approximately $84 million.SANM’s OutlookFor the third quarter of fiscal 2025, revenues are expected to be in the range of $1.925-$2.025 billion. GAAP earnings per share are forecasted to be between $1.05 and $1.15. Management estimates non-GAAP earnings per share in the band of $1.35-$1.45.SANM’s Zacks RankSanmina currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Upcoming ReleasesCGI Group GIB is scheduled to release second-quarter fiscal 2025 earnings on April 30. The Zacks Consensus Estimate for earnings is pegged at $1.5 per share, indicating an improvement of 2.74% from the year-ago figure.  InterDigital IDCC is scheduled to release first-quarter 2025 earnings on May 1. The Zacks Consensus Estimate for earnings is pegged at $2.05 per share, indicating a decline of 42.74% from the year-ago figure. Qualcomm QCOM is scheduled to release second-quarter fiscal 2025 earnings on April 30. The Zacks Consensus Estimate for earnings is pegged at $2.82 per share, indicating an improvement of 15.57% from the year-ago figure. Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report QUALCOMM Incorporated (QCOM): Free Stock Analysis Report InterDigital, Inc. (IDCC): Free Stock Analysis Report Sanmina Corporation (SANM): Free Stock Analysis Report CGI Group, Inc. (GIB): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks