#United States #San Jose #Fiscal 2025 #Sanmina Corporation #NASDAQ: SANM

Sanmina Corporation Reports First Quarter Fiscal 2025 Results

Sanmina Corporation, a frontrunner in integrated manufacturing solutions, has just announced its financial results for the first quarter of Fiscal 2025, showcasing impressive numbers that reflect strong performance in a competitive market. For the quarter that concluded on December 28, 2024, Sanmina reported revenues reaching $2.01 billion, marking substantial growth compared to previous periods. This growth trajectory illustrates the corporation's effective execution of its operational strategies and the robustness of its core market segments.

Key Financial Highlights

During the first quarter, Sanmina achieved a GAAP operating margin of 4.4% and a diluted earnings per share (EPS) of $1.16. The non-GAAP operating margin was slightly higher at 5.6%, with a non-GAAP diluted EPS of $1.44. These figures not only exceed analyst expectations but also demonstrate the company's commitment to enhancing shareholder value through diligent operational management.

Operational Strengths

One critical aspect of Sanmina's performance is its ability to generate significant cash flow. The company reported a cash flow from operations of $64 million, alongside free cash flow of $47 million. This robust cash generation capability is vital for supporting ongoing investments and strategic initiatives aimed at capitalizing on market opportunities.

The company also engaged in share repurchases during this period, buying back 0.2 million shares for $16 million. Sanmina's ending cash and cash equivalents stood at $642 million, providing a solid financial foundation for future growth and investments.

Positive Market Outlook

Jure Sola, Chairman and Chief Executive Officer of Sanmina, commented on the quarter's results, stating, "We delivered solid first-quarter financial results, with revenue towards the high end and non-GAAP earnings per share exceeding our outlook. We continue to execute well, as evident in our consistent operating margin and cash generation."

Looking ahead, Sanmina's Board of Directors has authorized the repurchase of up to an additional $300 million of its common stock. This decision aligns with the company's capital allocation priorities, bolstering its commitment to returning value to shareholders.

Guidance for Second Quarter

As for the second fiscal quarter, which ends on March 29, 2025, Sanmina expects to generate revenues in the range of $1.9 billion to $2.0 billion. The GAAP diluted EPS is projected to fluctuate between $1.03 and $1.13, while non-GAAP diluted EPS is anticipated to be between $1.30 and $1.40. These forward-looking statements exhibit the company's confidence in its performance amidst an unpredictable economic landscape.

Concluding Remarks

Despite the challenges presented by geopolitical uncertainties and market volatilities, Sanmina's disciplined operational framework and demonstrated resilience position it well for sustained growth. With strategic initiatives in place and a clear focus on operational excellence, Sanmina Corporation is poised to continue its upward trajectory throughout Fiscal 2025.

For those interested in further details from the first quarter, Sanmina will host a conference call on January 27, 2025, at 5:00 p.m. ET to elaborate on its financial results and answer investor inquiries.

For additional information regarding Sanmina's services and operations, visit www.sanmina.com.