Sanmina stock rocketed Tuesday after the electronics contract manufacturer beat estimates for its fiscal fourth quarter and guided higher for the current period.
The San Jose, Calif.-based company late Monday said it earned an adjusted $1.50 a share on sales of $2.2 billion in the quarter ended Oct. 1. Analysts polled by FactSet expected earnings of $1.33 a share on sales of $2.01 billion. On a year-over-year basis, Sanmina earnings surged 58% while sales climbed 34%.
For the current quarter, Sanmina forecast adjusted earnings of $1.46 a share on sales of $2.15 billion. That's based on the midpoint of its guidance. Analysts had been looking for earnings of $1.33 a share on sales of $1.99 billion in the fiscal first quarter ending Dec. 31. In the year-earlier period, Sanmina earned an adjusted $1.08 a share on sales of $1.76 billion.
"We continue to see strong demand in our (fiscal) first quarter and expect growth in fiscal 2023 based on our current business and new opportunities," Chief Executive Jure Sola said in a news release.
Sanmina Stock Is A Recent Breakout
He added, "We are executing our long-term strategy of expanding our presence in end-markets that require greater technical expertise, complex mission critical end-to-end solutions and embedded resilience that will give us a competitive advantage and further strengthen our financial model."
On the stock market today, Sanmina stock popped 11% higher to close at 65.45. During the regular session Monday, Sanmina stock advanced 2.6% to 58.97.
On Oct. 18, Sanmina stock broke out of a cup base at a buy point of 52.24, according to IBD MarketSmith charts. In intraday trading on Tuesday, it notched an 18-year high of 66.53.
Six Industry Players On Tech Leaders List
Sanmina stock is on the IBD Tech Leaders list with five other electronics contract manufacturers. One of those peers, Fabrinet, also reported quarterly results late Monday.
Bangkok-based Fabrinet smashed estimates for the September quarter and guided higher for the December quarter. Fabrinet stock jumped 9.5% to 121.92 on Tuesday.
Fabrinet earned an adjusted $1.97 a share on sales of $655.4 million in its fiscal first quarter ended Sept. 30. Wall Street was modeling earnings of $1.74 a share on sales of $630 million. On a year-over-year basis, Fabrinet earnings rose 36% while sales increased 21%.
For the current quarter, Fabrinet forecast adjusted earnings of $1.90 a share on sales of $650 million. That's based on the midpoint of its outlook. Analysts had been expecting earnings of $1.73 a share on sales of $632 million. In the year-earlier period, Fabrinet earned an adjusted $1.50 a share on sales of $567 million.
Fabrinet provides advanced optical packaging and precision optical, electromechanical and electronic manufacturing services to original equipment manufacturers of complex products.
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