Sanmina Corp (SANM) Q4 2024 Earnings Call Highlights: Surpassing Expectations with Strong ...

GuruFocus.com11-05

Revenue: $2.02 billion for Q4, exceeding the outlook of $1.9 billion to $2.0 billion, up 9.6% sequentially. Non-GAAP EPS: $1.43 per share, exceeding the high end of the outlook of $1.30 to $1.40. Non-...

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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSanmina Corp (SANM) Q4 2024 Earnings Call Highlights: Surpassing Expectations with Strong ...\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-05 15:07 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/sanmina-corp-sanm-q4-2024-070741096.html><strong>GuruFocus.com</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Revenue: $2.02 billion for Q4, exceeding the outlook of $1.9 billion to $2.0 billion, up 9.6% sequentially.\nNon-GAAP EPS: $1.43 per share, exceeding the high end of the outlook of $1.30 to $1.40.\nNon-...</p>\n\n<a href=\"https://finance.yahoo.com/news/sanmina-corp-sanm-q4-2024-070741096.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"SANM","symbol_name":"新美亚电子","start_time":0,"source_url":"https://finance.yahoo.com/news/sanmina-corp-sanm-q4-2024-070741096.html","article_id":"2481542777","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/Zw29TX42OIJkuyG_l2vyyQ--~B/aD01MDA7dz01MDA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/us.finance.gurufocus/ffc91936a3b7849fd10f8bbaa492761e"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2481542777","pubTimestamp":1730790461,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Revenue: $2.02 billion for Q4, exceeding the outlook of $1.9 billion to $2.0 billion, up 9.6% sequentially.Non-GAAP EPS: $1.43 per share, exceeding the high end of the outlook of $1.30 to $1.40.Non-GAAP Gross Margin: 8.7%, up 20 basis points sequentially.Non-GAAP Operating Expenses: $68.2 million, above the outlook.Cash and Cash Equivalents: $626 million at the end of the quarter.Inventory Turns: Improved to 5.4 times from 4.9 times in the prior quarter.Cash Flow from Operations: $52 million for Q4, $340 million for the fiscal year.Capital Expenditures: $23 million for Q4, $109 million for the fiscal year.Free Cash Flow: $29 million for Q4, $231 million for the fiscal year.Share Repurchases: 945,000 shares for approximately $65 million in Q4, totaling 4 million shares for $227 million for the year.IMS Non-GAAP Gross Margin: 7.3%, down 30 basis points sequentially.CPS Non-GAAP Gross Margin: 13.6%, up 210 basis points sequentially.GuruFocus has detected 4 Warning Signs with PRPL.Sanmina ","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"SANM":"新美亚电子"},"translate_title":"Sanmina Corp(SANM)2024年第四季度收益看涨期权亮点：超出预期，强劲……","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"SANM":1},"content_text":"Revenue: $2.02 billion for Q4, exceeding the outlook of $1.9 billion to $2.0 billion, up 9.6% sequentially.\nNon-GAAP EPS: $1.43 per share, exceeding the high end of the outlook of $1.30 to $1.40.\nNon-GAAP Gross Margin: 8.7%, up 20 basis points sequentially.\nNon-GAAP Operating Expenses: $68.2 million, above the outlook.\nNon-GAAP Operating Margin: 5.3%, flat sequentially.\nCash and Cash Equivalents: $626 million at the end of the quarter.\nInventory: $1.33 billion, down approximately 4% sequentially.\nInventory Turns: Improved to 5.4 times from 4.9 times in the prior quarter.\nNon-GAAP Pretax ROIC: 23% for the quarter.\nCash Flow from Operations: $52 million for Q4, $340 million for the fiscal year.\nCapital Expenditures: $23 million for Q4, $109 million for the fiscal year.\nFree Cash Flow: $29 million for Q4, $231 million for the fiscal year.\nShare Repurchases: 945,000 shares for approximately $65 million in Q4, totaling 4 million shares for $227 million for the year.\nIMS Revenue: $1.63 billion, up 10.1% sequentially.\nCPS Revenue: $418 million, up 7.6% sequentially.\nIMS Non-GAAP Gross Margin: 7.3%, down 30 basis points sequentially.\nCPS Non-GAAP Gross Margin: 13.6%, up 210 basis points sequentially.\n\n\nWarning! GuruFocus has detected 4 Warning Signs with PRPL.\n\nRelease Date: November 04, 2024\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.\n Positive Points \n\nSanmina Corp (NASDAQ:SANM) delivered solid revenue of $2.02 billion for the fourth quarter, exceeding their outlook of $1.9 billion to $2.0 billion.\nThe company achieved a non-GAAP EPS of $1.43 per share, surpassing the high end of their guidance range.\nSanmina Corp (NASDAQ:SANM) reported strong cash flow from operations at $52 million for the fourth quarter and $340 million for the fiscal year.\nThe company maintained a strong balance sheet with $626 million in cash and no outstanding borrowings on their $800 million revolver.\nSanmina Corp (NASDAQ:SANM) is optimistic about fiscal year 2025, expecting high single-digit revenue growth driven by new and existing programs.\n\n Negative Points \n\nFiscal year 2024 was described as a transition year with a year-over-year revenue decline due to inventory adjustments with customers.\nNon-GAAP operating expenses were above outlook due to targeted investments, impacting operating margins.\nThe IMS segment experienced a decline in non-GAAP gross margin due to unfavorable mix.\nNon-GAAP earnings per share declined 16% compared to the prior year, despite improvements over previous years.\nThe company faces challenges in improving inventory turns, which, although improved, still have room for further enhancement.\n\n Q & A Highlights \nQ: Can you clarify the revenue contribution from the cloud segment and its growth prospects for 2025? A: Jure Sola, Chairman and CEO, explained that the cloud segment was about 15% of revenue, slightly down from 16% the previous year due to inventory issues. However, he expressed optimism for growth in 2025, focusing on high-performance networks and cloud infrastructure, with new programs expected to drive growth.\nQ: What are the trends in the communication and optical networking segments, and how long will the inventory correction last? A: Jure Sola noted that inventory levels are decreasing, with some customers already clearing their excess. He anticipates the correction to end soon, possibly within a quarter. Growth is expected across key customers, particularly in high-end optical networks.\nQ: How should we view the progression of operating margins in fiscal 2025, and what are the areas of investment? A: Jon Faust, CFO, stated that margin expansion is expected in both IMS and CPS segments. Investments are being made in R&D, strategic opportunities, and workforce, with a focus on leveraging operating expenses as revenue grows.\nQ: What are the priorities for cash allocation in fiscal 2025, and is there potential for M&A or share buybacks? A: Jon Faust emphasized that priorities remain on organic investments, strategic acquisitions, and share repurchases. The company sees itself as undervalued and will continue to evaluate opportunities for growth without taking on unnecessary debt.\nQ: Can you provide an update on the Reliance Industries joint venture and potential for additional joint ventures? A: Jure Sola expressed satisfaction with the partnership, highlighting its success in the Indian market and potential for export growth. The joint venture is performing better than expected, and Sanmina is open to exploring similar opportunities.\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.This article first appeared on \nGuruFocus.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2481542777"}