SANMINA CORPORATION Reports Third Quarter Results for Fiscal Year 2023
August 28, 2023
🌥️Earnings Overview
SANMINA CORPORATION ($NASDAQ:SANM) reported total revenue of USD 2207.1 million for the third quarter of fiscal year 2023 (ending July 31st 2023), a 9.3% increase from the same period the previous year. Net income, however, decreased 3.8% to USD 76.5 million compared to the same quarter of the previous year.
Price History
The company’s stock opened at $60.1 and closed the day at $61.5, representing a 2.6% increase from the prior closing price of $59.9. The company’s strong performance was attributed to improved operational efficiency and cost control initiatives, as well as strong demand for its products and services. Overall, it was a strong quarter for SANMINA CORPORATION, with the stock closing the day up 2.6%. The company expects to continue its momentum in the fourth quarter, as it looks to capitalize on its strong performance in the third quarter and continue its cost optimization initiatives. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Sanmina Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 9.08k | 322.23 | 3.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Sanmina Corporation. More…
| Operations | Investing | Financing |
| 240.21 | -202.61 | 125.38 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Sanmina Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.96k | 2.69k | 32.52 |
Key Ratios Snapshot
Some of the financial key ratios for Sanmina Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 9.2% | 26.6% | 5.0% |
| FCF Margin | ROE | ROA |
| 0.4% | 15.3% | 5.8% |
Analysis
GoodWhale has conducted an analysis on SANMINA CORPORATION’s financials. According to the Star Chart, this company is classified as a ‘cheetah’. This signifies that SANMINA CORPORATION has achieved high revenue or earnings growth but is considered less stable due to lower profitability. Given this classification, what type of investors may be interested in such a company? Generally, investors who are looking for higher return-on-investment (ROI) may be more inclined to invest in a cheetah type of company. However, they must be mindful of the higher risk associated with such an investment. On the other hand, GoodWhale has found that SANMINA CORPORATION holds a high health score of 9/10 with regard to its cashflows and debt. This assessment indicates that the company is capable to sustain future operations in times of crisis. Moreover, GoodWhale has also found that SANMINA CORPORATION is strong in asset, growth, and medium in profitability. Additionally, the company has a weak dividend score. In conclusion, investors who are looking for higher returns may be best suited to invest in SANMINA CORPORATION. However, they must be aware of the risks associated with such an investment. Moreover, given the company’s strong financial health and its ability to sustain operations in times of crisis, it is likely to be a wise investment decision. More…
Peers
The company’s competitors include TT Electronics PLC, Frencken Group Ltd, and Elma Electronic AG.
– TT Electronics PLC ($LSE:TTG)
TT Electronics is a provider of advanced electronics solutions for the transportation, industrial, aerospace, and defence markets. The company has a market cap of 229M as of 2022 and a return on equity of 3.65%. TT Electronics designs, manufactures, and markets a range of electronic components, modules, and systems. Its products include sensors, actuators, and control systems. The company serves original equipment manufacturers and Tier 1 suppliers in the automotive, aerospace, defence, and industrial markets.
– Frencken Group Ltd ($SGX:E28)
Frencken Group Ltd is a Singapore-based investment holding company that, through its subsidiaries, is engaged in the design, manufacture, assembly and distribution of mechatronic products, and provision of engineering services. The Company’s segments include Mechatronic Products, which includes design, manufacture, assembly and distribution of mechatronic products; and Engineering Services, which includes provision of engineering services.
– Elma Electronic AG ($LTS:0QKS)
Elma Electronic AG is a publicly traded company with a market capitalization of 233.06M as of 2022. The company has a return on equity of 8.95%. Elma Electronic AG is a leading manufacturer of electronic packaging products and solutions. The company’s products are used in a variety of industries, including aerospace, defense, medical, and industrial. Elma Electronic AG’s products are designed to meet the most demanding requirements of its customers.
Summary
Investors should consider the recent financial results of Sanmina Corporation for the third quarter of fiscal year 2023. The company reported total revenues of USD 2207.1 million, an increase of 9.3% from the same period a year ago.
However, net income decreased 3.8% to USD 76.5 million compared to the prior year. These results suggest that while revenue is growing, the company is struggling to maximize profits. Investors should further evaluate the company’s financial performance to determine if it is a sound long-term investment.
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