SAN JOSE, Calif. - Sanmina Corporation (NASDAQ: SANM), a leading manufacturing solutions provider, reported its fiscal second quarter results, which revealed a mixed financial performance and a weaker-than-expected outlook for the next quarter. The company's stock fell 0.7% in response to the guidance falling short of analyst expectations.
For the second quarter ended March 30, 2024, Sanmina posted adjusted earnings per share (EPS) of $1.30, slightly surpassing the analyst consensus of $1.25. However, revenue for the quarter was $1.83 billion, not meeting the expected $1.88 billion. When compared to the same quarter last year, the company's revenue saw a decline, reflecting the challenges in some of its key markets.
Looking ahead, Sanmina provided a third-quarter guidance that did not align with analyst projections. The company forecasts adjusted EPS to be between $1.22 and $1.32, which is below the analyst consensus of $1.36. Revenue expectations for the third quarter are set between $1.8 billion and $1.9 billion, also below the consensus estimate of $1.97 billion. The midpoint of the guidance range for EPS and revenue both fall short of the consensus, signaling a cautious stance from the company.
Jure Sola, Chairman and CEO of Sanmina, commented on the results, "Our focused execution and operating discipline yielded financial results in line with our outlook. During the quarter, we started to see positive movement in some end-markets that have been notably depressed for the last few quarters. While there is still macroeconomic uncertainty, the team continues to demonstrate resilience. We remain optimistic that we will see sequential improvement as we progress through 2024."
Sanmina's financial health remains stable, with the company reporting $72 million in cash flow from operations and ending the quarter with $651 million in cash and cash equivalents. Despite the current economic uncertainties, the management's outlook suggests a degree of confidence in the company's resilience and potential for improvement as the year unfolds.
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