Description

Sanmina Corporation: Why Are We A Tad Bit Pessimistic About This Company Despite All The Positives?

Sanmina Corporation, during its fiscal second quarter 2024, reported mixed financial outcomes. The company’s revenue stood at $1.835 billion, which was at the low end of its guidance range of $1.825 billion to $1.925 billion and represented a 2% sequential decrease. This performance indicates a pace of stabilization in revenue figures as Sanmina expects improvements moving forward, influenced by alleviating customer inventory absorption issues. The company achieved a non-GAAP gross margin of 8.9%, surpassing expectations and marking a year-over[1]year increase of 50 basis points. This improvement was attributed to favorable product mix, focused execution, and robust operational discipline. However, the non-GAAP operating margin at 5.4% showed slight deceleration, which can be linked to incidental deferred compensation costs, although overall these remained within the anticipated short-term operating margin range of 5-6%.

Our Report Structure:

⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures

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