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SAN JOSE - Sanmina Corporation (NASDAQ:SANM) reported third-quarter earnings that exceeded analyst expectations, but shares tumbled 5% after the integrated manufacturing solutions provider issued fourth-quarter guidance that fell short of Wall Street estimates.
The company reported adjusted earnings per share of $1.53 for the third quarter ended June 28, beating analyst expectations of $1.42. Revenue came in at $2.04 billion, surpassing the consensus estimate of $1.98 billion and representing a 10.9% increase YoY from $1.84 billion.
Despite the strong quarterly performance, investors focused on Sanmina’s disappointing outlook. The company forecasts fourth-quarter revenue between $2.0 billion and $2.1 billion, below analyst expectations of $2.13 billion. Similarly, adjusted earnings per share guidance of $1.52 to $1.62 falls short at the midpoint compared to the consensus estimate of $1.62.
"Our focused execution and operating discipline yielded solid third quarter financial results. Revenue, non-GAAP gross margin, and non-GAAP diluted earnings per share exceeded our outlook," stated Jure Sola, Chairman and Chief Executive Officer. "We continue to benefit from operational efficiencies and a favorable business mix as reflected in our healthy operating margin and robust cash generation."
The company reported a non-GAAP operating margin of 5.7% for the quarter, an improvement from 5.3% in the same period last year. Cash flow from operations reached $201 million, with free cash flow of $168 million.
Despite the market’s negative reaction to guidance, management remained optimistic about future prospects. "Our customer base and pipeline of new opportunities continue to grow. Based on what we are seeing from our customers and new program wins, we are confident in our ability to deliver solid fourth quarter and fiscal year results with momentum continuing into fiscal 2026," Sola added.
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