Sanmina shares rise 4% after Q4 profit tops estimates
Sanmina reported fourth-quarter adjusted diluted EPS of $4.43 against the $3.33 consensus estimate, and revenue of $3.86 billion topped the $3.55 billion estimate. The company raised its fiscal 2026 forecast.
Key takeaways
- Sanmina (SANM) reported fiscal fourth-quarter adjusted diluted EPS of $4.43, topping the $3.33 consensus estimate, and revenue of $3.86 billion, topping the $3.55 billion estimate. It also gave first-quarter fiscal 2027 revenue guidance of $3.8 billion to $4.1 billion.
Sanmina (SANM) topped fourth-quarter profit and revenue estimates and raised its fiscal 2026 forecast.
Shares rose 3.9% at 3:59 p.m. ET on Nov. 10, from a $149.64 close.
Here's how the company did:
- Revenue: $3.86 billion vs. $2.10 billion a year earlier, against a $3.55 billion estimate
- Adjusted diluted EPS: $4.43 vs. $3.33 expected, from $1.67 a year earlier
- GAAP diluted EPS: $2.14 vs. $0.88 a year earlier
- Non-GAAP operating margin: 9.0% vs. 6.0% a year earlier
Sanmina integrated the ZT Systems business and grew its core Sanmina business by double digits.
Full-year revenue was $14.53 billion and adjusted diluted EPS $13.28. Operating cash flow was $944 million, and free cash flow $541 million.
Fiscal 2026 forecast raised
Adjusted EPS forecast raised to $11.90 to $12.20, from $10.75 to $11.35 on July 27. Revenue forecast raised to $14.0 billion to $14.3 billion, from $13.7 billion to $14.3 billion.
Fiscal 2027 outlook
First-quarter fiscal 2027 revenue is expected at $3.8 billion to $4.1 billion, adjusted diluted EPS $3.50 to $3.85.
Full-year fiscal 2027 revenue is expected at $17.5 billion to $19.5 billion, adjusted diluted EPS $15.50 to $17.50.
Chairman and CEO Jure Sola said, "we expect demand to remain strong."
Net income and cash
GAAP net income has risen in each of the last three quarters, from $48.1 million in the fourth quarter of fiscal 2025 to $117.1 million in the third quarter of fiscal 2026.
It repurchased $154 million of stock and ended the quarter with $1.68 billion in cash and cash equivalents.
Credit agreement amendment
Sanmina entered into Amendment No. 5 to its senior secured credit agreement on Oct. 27.
It adds $70 million of incremental term A loans, bringing the term loan A facility back to $1.4 billion. It extends maturity to Oct. 28, 2031, for the $1.5 billion revolver, the term loan A facility and the $600 million delayed draw term loan A facility.
Term SOFR margin ranges from 1.000% to 1.750%, based on debt ratings from S&P and Moody's.