Sanmina Q1 revenue and adj EPS beat expectations

Overview

• Manufacturing solutions provider's fiscal Q1 revenue beat analyst expectations

• Adjusted EPS for fiscal Q1 beat analyst expectations

• Company repurchased 516,000 shares for $79 mln

Outlook

• Sanmina expects second-quarter revenue between $3.1 bln and $3.4 bln

• Company forecasts second-quarter non-GAAP EPS between $2.25 and $2.55

• Sanmina sees strong demand in Communications Networks and Cloud & AI Infrastructure

Result Drivers

• AI DEMAND - Strong demand in Communications Networks and Cloud & AI Infrastructure sectors driven by AI hardware needs

• ZT SYSTEMS INTEGRATION - Integration of ZT Systems is progressing as expected, contributing to opportunities ahead

• PARTNERSHIPS - Focus on building broader partnerships to deliver profitable growth and maintain a healthy balance sheet

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the electronic equipment & parts peer group is "buy"

• Wall Street's median 12-month price target for Sanmina Corp is $200.00, about 12.5% above its January 23 closing price of $177.83

• The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release: ID:nPn8MS3Xfa

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