Sanmina, a manufacturing services provider based in San Jose, California, reported better-than-expected second-quarter results and expressed optimism for the remainder of the year. As a result, the company's stock rose by 15% in after-hours trading, reaching $58.35, following a 0.6% increase at the close of Monday's markets. Although the stock has experienced a slight decline of approximately 1.4% since the start of the year, Sanmina's positive outlook has generated renewed investor confidence.
Projected Second-Quarter Revenue
Sanmina anticipates that its second-quarter revenue will remain relatively stable on a sequential basis, ranging from $1.825 billion to $1.925 billion. This forecast slightly exceeds analysts' expectations of $1.8 billion, indicating the company's potential for growth during this period.
Expectations for the Second Half of the Year
Chief Executive Jure Sola expressed confidence in Sanmina's future performance, stating that the company expects to witness improvements as it progresses into the second half of the year. This optimistic outlook suggests a favorable trajectory for Sanmina's operations and financials in the coming months.
Significantly Higher Earnings
Excluding certain one-time items, Sanmina predicts earnings between $1.20 and $1.30 per share for the quarter, considerably higher than the $1.02 per share forecasted by analysts. This notable increase in projected earnings showcases Sanmina's potential for profitability and shareholder value.
First Quarter Results
In the first quarter ended December 31, Sanmina recorded a profit of $57.1 million, or 98 cents per share, compared to $92 million, or $1.54 per share, during the previous year's first quarter. Net sales also experienced a 20% decline to $1.87 billion, which aligns with analysts' expectations.
It is clear that Sanmina's positive outlook, strong second-quarter forecast, and improved earnings demonstrate its resilience and potential for growth in the manufacturing services sector.