Latest news with #JureSola
Yahoo
20-05-2025
- Business
- Yahoo
AMD to offload ZT Systems server-manufacturing for $3bn
Advanced Micro Devices (AMD) has agreed to divest ZT Systems' data centre infrastructure manufacturing business to Sanmina for up to $3bn The deal positions Sanmina as a preferred partner for the manufacturing of AMD's cloud rack and cluster-scale AI solutions. Under the deal terms, Sanmina will take over ZT Systems' operations for $2.25bn in cash, $300m premium split between cash and equity. The deal also includes a contingent consideration of $450m based on the financial performance of the business over the next three years. With the acquisition, Sanmina expects to increase scale and end-market exposure to cloud and ai infrastructure. It also anticipates bolstering its offering of end-to-end component technology, systems integration, and supply chain solutions. Sanmina chairman and CEO Jure Sola said: "ZT Systems' liquid cooling capabilities, high-quality manufacturing capacity and significant cloud and AI infrastructure experience are the perfect complement to Sanmina's global portfolio, mission-critical technologies and vertical integration capabilities. 'Together, we will be better able to deliver a competitive advantage to our customers with solutions for the entire product lifecycle. We look forward to our ongoing partnership with AMD as we work together to set the standard for quality and flexibility to benefit the entire AI ecosystem.' Subject to regulatory approval and standard closing conditions, the transaction is scheduled for completion by late 2025. AMD, however, will maintain ZT Systems' design and customer support teams. AMD Data Center Solutions business unit executive vice-president and general manager Forrest Norrod said: "We look forward to working with Sanmina as our preferred NPI manufacturing partner. 'This agreement will help accelerate the US-based manufacturing of AMD AI end-to-end training and inference solutions – which are optimised for our customer's unique environments, ready-to-deploy at scale and based on our open approach. 'Together, we will accelerate time-to-market and set the standard for quality and flexibility to benefit the entire AI ecosystem." Morgan Stanley is advising AMD financially, while Latham & Watkins is providing legal counsel. The sale follows AMD's deal to acquire ZT Systems for $4.9bn in 2024, with the intention to sell the server manufacturing business upon completion of the deal. "AMD to offload ZT Systems server-manufacturing for $3bn" was originally created and published by Verdict, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
29-04-2025
- Business
- Yahoo
Sanmina (NASDAQ:SANM) Posts Better-Than-Expected Sales In Q1 But Quarterly Revenue Guidance Misses Expectations
Electronics manufacturing services company Sanmina (NASDAQ:SANM) reported Q1 CY2025 results beating Wall Street's revenue expectations , with sales up 8.1% year on year to $1.98 billion. On the other hand, next quarter's revenue guidance of $1.98 billion was less impressive, coming in 4.4% below analysts' estimates. Its non-GAAP profit of $1.41 per share was 2.5% above analysts' consensus estimates. Is now the time to buy Sanmina? Find out in our full research report. Revenue: $1.98 billion vs analyst estimates of $1.97 billion (8.1% year-on-year growth, 1% beat) Adjusted EPS: $1.41 vs analyst estimates of $1.38 (2.5% beat) Adjusted Operating Income: $110.6 million vs analyst estimates of $106.8 million (5.6% margin, 3.6% beat) Revenue Guidance for Q2 CY2025 is $1.98 billion at the midpoint, below analyst estimates of $2.07 billion Adjusted EPS guidance for Q2 CY2025 is $1.40 at the midpoint, below analyst estimates of $1.54 Operating Margin: 4.6%, in line with the same quarter last year Free Cash Flow Margin: 7.9%, up from 2.3% in the same quarter last year Market Capitalization: $4.47 billion "We delivered solid financial results for the second quarter, with revenue at the high end and non-GAAP earnings per share exceeding our outlook. Our ability to adapt to the evolving environment is reflected in our consistent operating margin and strong cash generation," stated Jure Sola, Chairman and Chief Executive Officer. Founded in 1980, Sanmina (NASDAQ:SANM) is an electronics manufacturing services company offering end-to-end solutions for various industries. A company's long-term sales performance is one signal of its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Regrettably, Sanmina's sales grew at a weak 1.3% compounded annual growth rate over the last five years. This fell short of our benchmarks and is a poor baseline for our analysis. We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. Sanmina's performance shows it grew in the past but relinquished its gains over the last two years, as its revenue fell by 6.2% annually. Sanmina isn't alone in its struggles as the Electrical Systems industry experienced a cyclical downturn, with many similar businesses observing lower sales at this time. This quarter, Sanmina reported year-on-year revenue growth of 8.1%, and its $1.98 billion of revenue exceeded Wall Street's estimates by 1%. Company management is currently guiding for a 7.3% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 8.1% over the next 12 months, an improvement versus the last two years. This projection is above the sector average and implies its newer products and services will catalyze better top-line performance. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) stock benefiting from the rise of AI. Click here to access our free report one of our favorites growth stories. Operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses – everything from the cost of goods sold to advertising and wages. It's also useful for comparing profitability across companies with different levels of debt and tax rates because it excludes interest and taxes. Sanmina was profitable over the last five years but held back by its large cost base. Its average operating margin of 4.6% was weak for an industrials business. This result isn't too surprising given its low gross margin as a starting point. Analyzing the trend in its profitability, Sanmina's operating margin might fluctuated slightly but has generally stayed the same over the last five years. This raises questions about the company's expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. This quarter, Sanmina generated an operating profit margin of 4.6%, in line with the same quarter last year. This indicates the company's cost structure has recently been stable. Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. Sanmina's EPS grew at a spectacular 14.8% compounded annual growth rate over the last five years, higher than its 1.3% annualized revenue growth. However, this alone doesn't tell us much about its business quality because its operating margin didn't expand. Diving into Sanmina's quality of earnings can give us a better understanding of its performance. A five-year view shows that Sanmina has repurchased its stock, shrinking its share count by 23.2%. This tells us its EPS outperformed its revenue not because of increased operational efficiency but financial engineering, as buybacks boost per share earnings. Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business. For Sanmina, its two-year annual EPS declines of 4.2% mark a reversal from its (seemingly) healthy five-year trend. We hope Sanmina can return to earnings growth in the future. In Q1, Sanmina reported EPS at $1.41, up from $1.30 in the same quarter last year. This print beat analysts' estimates by 2.5%. Over the next 12 months, Wall Street expects Sanmina's full-year EPS of $5.53 to grow 20.5%. It was encouraging to see Sanmina beat analysts' adjusted operating income expectations this quarter. We were also happy its revenue narrowly outperformed Wall Street's estimates. On the other hand, its EPS guidance for next quarter missed significantly and its revenue guidance for next quarter fell short of Wall Street's estimates. Overall, this was a mixed quarter. The stock remained flat at $80.73 immediately after reporting. Big picture, is Sanmina a buy here and now? When making that decision, it's important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it's free.
Yahoo
14-04-2025
- Business
- Yahoo
Q4 Earnings Highs And Lows: Sanmina (NASDAQ:SANM) Vs The Rest Of The Electrical Systems Stocks
Looking back on electrical systems stocks' Q4 earnings, we examine this quarter's best and worst performers, including Sanmina (NASDAQ:SANM) and its peers. Like many equipment and component manufacturers, electrical systems companies are buoyed by secular trends such as connectivity and industrial automation. More specific pockets of strong demand include Internet of Things (IoT) connectivity and the 5G telecom upgrade cycle, which can benefit companies whose cables and conduits fit those needs. But like the broader industrials sector, these companies are also at the whim of economic cycles. Interest rates, for example, can greatly impact projects that drive demand for these products. The 13 electrical systems stocks we track reported a slower Q4. As a group, revenues were in line with analysts' consensus estimates while next quarter's revenue guidance was 6.1% below. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 20.3% since the latest earnings results. Founded in 1980, Sanmina (NASDAQ:SANM) is an electronics manufacturing services company offering end-to-end solutions for various industries. Sanmina reported revenues of $2.01 billion, up 7% year on year. This print exceeded analysts' expectations by 1.5%. Despite the top-line beat, it was still a mixed quarter for the company with a decent beat of analysts' EPS estimates but EPS guidance for next quarter missing analysts' expectations significantly. "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," stated Jure Sola, Chairman and Chief Executive Officer of Sanmina Corporation. The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $78.42. Read our full report on Sanmina here, it's free. Enhancing commercial environments, LSI (NASDAQ:LYTS) provides lighting and display solutions for businesses and retailers. LSI reported revenues of $147.7 million, up 35.5% year on year, outperforming analysts' expectations by 14.3%. The business had an incredible quarter with a solid beat of analysts' EPS estimates and an impressive beat of analysts' EBITDA estimates. LSI achieved the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is down 10.7% since reporting. It currently trades at $17.69. Is now the time to buy LSI? Access our full analysis of the earnings results here, it's free. Founded in 1946, Methode Electronics (NYSE:MEI) is a global supplier of custom-engineered solutions for Original Equipment Manufacturers (OEMs). Methode Electronics reported revenues of $239.9 million, down 7.6% year on year, falling short of analysts' expectations by 8.9%. It was a disappointing quarter as it posted revenue guidance for next quarter missing analysts' expectations. Methode Electronics delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 48% since the results and currently trades at $5.11. Read our full analysis of Methode Electronics's results here. Originally a metal-working shop supporting local petrochemical facilities, Powell (NYSE:POWL) has grown from a small Houston manufacturer to a global provider of electrical systems. Powell reported revenues of $241.4 million, up 24.4% year on year. This number topped analysts' expectations by 3.8%. Taking a step back, it was a satisfactory quarter as it also produced a decent beat of analysts' EPS estimates but a significant miss of analysts' EBITDA estimates. The stock is down 28% since reporting and currently trades at $176.11. Read our full, actionable report on Powell here, it's free. Founded in 1961, Kimball Electronics (NYSE:KE) is a global contract manufacturer specializing in electronics and manufacturing solutions for automotive, medical, and industrial markets. Kimball Electronics reported revenues of $357.4 million, down 15.2% year on year. This print missed analysts' expectations by 0.7%. Overall, it was a softer quarter as it also recorded full-year revenue guidance missing analysts' expectations and a significant miss of analysts' EBITDA estimates. Kimball Electronics had the weakest full-year guidance update among its peers. The stock is down 24.1% since reporting and currently trades at $13.57. Read our full, actionable report on Kimball Electronics here, it's free. Thanks to the Fed's rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn't send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump's November win lit a fire under major indices and sent them to all-time highs. However, there's still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy. Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Join Paid Stock Investor Research Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.
Yahoo
27-01-2025
- Business
- Yahoo
Sanmina's (NASDAQ:SANM) Q4 Sales Beat Estimates
Electronics manufacturing services company Sanmina (NASDAQ:SANM) reported Q4 CY2024 results beating Wall Street's revenue expectations , with sales up 7% year on year to $2.01 billion. On the other hand, next quarter's revenue guidance of $1.95 billion was less impressive, coming in 2.1% below analysts' estimates. Its non-GAAP profit of $1.44 per share was 5.1% above analysts' consensus estimates. Is now the time to buy Sanmina? Find out in our full research report. Revenue: $2.01 billion vs analyst estimates of $1.98 billion (7% year-on-year growth, 1.5% beat) Adjusted EPS: $1.44 vs analyst estimates of $1.37 (5.1% beat) Revenue Guidance for Q1 CY2025 is $1.95 billion at the midpoint, below analyst estimates of $1.99 billion Adjusted EPS guidance for Q1 CY2025 is $1.35 at the midpoint, below analyst estimates of $1.42 Operating Margin: 4.4%, in line with the same quarter last year Free Cash Flow Margin: 2.3%, down from 4.9% in the same quarter last year Market Capitalization: $4.56 billion "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," stated Jure Sola, Chairman and Chief Executive Officer of Sanmina Corporation. Founded in 1980, Sanmina (NASDAQ:SANM) is an electronics manufacturing services company offering end-to-end solutions for various industries. Like many equipment and component manufacturers, electrical systems companies are buoyed by secular trends such as connectivity and industrial automation. More specific pockets of strong demand include Internet of Things (IoT) connectivity and the 5G telecom upgrade cycle, which can benefit companies whose cables and conduits fit those needs. But like the broader industrials sector, these companies are also at the whim of economic cycles. Interest rates, for example, can greatly impact projects that drive demand for these products. A company's long-term sales performance can indicate its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Unfortunately, Sanmina struggled to consistently increase demand as its $7.7 billion of sales for the trailing 12 months was close to its revenue five years ago. This fell short of our benchmarks and is a sign of poor business quality. We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. Sanmina's recent history shows its demand has stayed suppressed as its revenue has declined by 4.9% annually over the last two years. This quarter, Sanmina reported year-on-year revenue growth of 7%, and its $2.01 billion of revenue exceeded Wall Street's estimates by 1.5%. Company management is currently guiding for a 6.3% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 8.4% over the next 12 months, an improvement versus the last two years. This projection is above average for the sector and suggests its newer products and services will fuel better top-line performance. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Sanmina was profitable over the last five years but held back by its large cost base. Its average operating margin of 4.5% was weak for an industrials business. This result isn't too surprising given its low gross margin as a starting point. Analyzing the trend in its profitability, Sanmina's operating margin might have seen some fluctuations but has generally stayed the same over the last five years, which doesn't help its cause. In Q4, Sanmina generated an operating profit margin of 4.4%, in line with the same quarter last year. This indicates the company's cost structure has recently been stable. Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. Sanmina's EPS grew at a solid 10% compounded annual growth rate over the last five years, higher than its flat revenue. However, this alone doesn't tell us much about its business quality because its operating margin didn't expand. Diving into the nuances of Sanmina's earnings can give us a better understanding of its performance. A five-year view shows that Sanmina has repurchased its stock, shrinking its share count by 23.1%. This tells us its EPS outperformed its revenue not because of increased operational efficiency but financial engineering, as buybacks boost per share earnings. Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business. For Sanmina, its two-year annual EPS declines of 1.4% mark a reversal from its (seemingly) healthy five-year trend. We hope Sanmina can return to earnings growth in the future. In Q4, Sanmina reported EPS at $1.44, up from $1.30 in the same quarter last year. This print beat analysts' estimates by 5.1%. Over the next 12 months, Wall Street expects Sanmina's full-year EPS of $5.42 to grow 15.8%. It was good to see Sanmina narrowly top analysts' revenue expectations this quarter. We were also happy its EPS outperformed Wall Street's estimates. On the other hand, its revenue and EPS guidance for next quarter fell short of Wall Street's estimates. Overall, this quarter was mixed. The stock traded up 2.5% to $80.60 immediately after reporting. Should you buy the stock or not? When making that decision, it's important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it's free.
