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SANM's Robust Portfolio Fueling Revenues: Will the Trend Persist?
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Key Takeaways
Sanmina's net sales rose to $2.09B from $2.01B as its broad portfolio supports steady demand across segments.
SANM's end-to-end approach and dynamic manufacturing help customers navigate global volatility.
Sanmina's diverse presence across medical, defense, cloud and industrial markets boosts resilience.
Sanmina Corporation (SANM - Free Report) is benefiting from solid revenue growth backed by its comprehensive portfolio and solid demand in multiple segments. Net sales during the quarter increased to $2.09 billion from $2.01 billion reported in the year-ago quarter, beating the Zacks Consensus Estimate by $46 million.
Sanmina’s comprehensive portfolio offers product designing, manufacturing, assembling, testing and aftermarket support. Such an end-to-end approach enables customers to rely on a single partner throughout the product lifecycle management. This strategy, combined with the dynamic manufacturing approach, allows Sanmina to serve its customers despite growing geopolitical volatility and tariff-related uncertainties. This makes the company a preferred choice for organizations amid growing supply-chain disruptions worldwide.
Sanmina has a strong presence across multiple end markets, including medical, defense, aerospace, communication, cloud infrastructure, automotive, industrial and energy. Such a diverse market presence strengthens its business resilience by mitigating risks associated with economic downturns in any single industry.
Moreover, the company prioritizes expanding into high-growth industries backed by its strong global network, deep expertise and unique value proposition in advanced electronics manufacturing. Per the Zacks Consensus Estimate, Sanmina is projected to report $3.1 billion in revenues, indicating growth of 54.51% year over year.
How Are Competitors Faring?
The company faces competition from Jabil, Inc. (JBL - Free Report) and Celestica Inc. (CLS - Free Report) in the electronic manufacturing services industry. Jabil reported revenues of $8.3 billion in the recent quarter, up from $6.96 billion a year ago. Healthy demand in the healthcare & packaging, Capital Equipment, AI-related Cloud and Data Center Infrastructure verticals is driving growth. Jabil’s focus on end-market and product diversification is a key catalyst.
Celestica reported quarterly revenues of $3.19 billion, up 27.8% year over year. Solid growth in the hardware platform solutions portfolio, backed by hyperscale customer demand for networking products, including 400G switches and 800G switches, is driving growth. Growing AI-driven data center investments across industries boast a solid growth potential for Celestica.
Image: Bigstock
SANM's Robust Portfolio Fueling Revenues: Will the Trend Persist?
Key Takeaways
Sanmina Corporation (SANM - Free Report) is benefiting from solid revenue growth backed by its comprehensive portfolio and solid demand in multiple segments. Net sales during the quarter increased to $2.09 billion from $2.01 billion reported in the year-ago quarter, beating the Zacks Consensus Estimate by $46 million.
Sanmina’s comprehensive portfolio offers product designing, manufacturing, assembling, testing and aftermarket support. Such an end-to-end approach enables customers to rely on a single partner throughout the product lifecycle management. This strategy, combined with the dynamic manufacturing approach, allows Sanmina to serve its customers despite growing geopolitical volatility and tariff-related uncertainties. This makes the company a preferred choice for organizations amid growing supply-chain disruptions worldwide.
Sanmina has a strong presence across multiple end markets, including medical, defense, aerospace, communication, cloud infrastructure, automotive, industrial and energy. Such a diverse market presence strengthens its business resilience by mitigating risks associated with economic downturns in any single industry.
Moreover, the company prioritizes expanding into high-growth industries backed by its strong global network, deep expertise and unique value proposition in advanced electronics manufacturing. Per the Zacks Consensus Estimate, Sanmina is projected to report $3.1 billion in revenues, indicating growth of 54.51% year over year.
How Are Competitors Faring?
The company faces competition from Jabil, Inc. (JBL - Free Report) and Celestica Inc. (CLS - Free Report) in the electronic manufacturing services industry. Jabil reported revenues of $8.3 billion in the recent quarter, up from $6.96 billion a year ago. Healthy demand in the healthcare & packaging, Capital Equipment, AI-related Cloud and Data Center Infrastructure verticals is driving growth. Jabil’s focus on end-market and product diversification is a key catalyst.
Celestica reported quarterly revenues of $3.19 billion, up 27.8% year over year. Solid growth in the hardware platform solutions portfolio, backed by hyperscale customer demand for networking products, including 400G switches and 800G switches, is driving growth. Growing AI-driven data center investments across industries boast a solid growth potential for Celestica.
SANM's Price Performance, Valuation & Estimates
Sanmina’s shares have gained 108.1% compared with the Electronics - Manufacturing Services industry’s growth of 98.3%.
Image Source: Zacks Investment Research
From a valuation standpoint, the company’s shares currently trade at 15.81 times forward 12-month earnings, lower than the industry.
Image Source: Zacks Investment Research
Earnings estimates for Sanmina for 2025 and 2026 have increased over the past 60 days.
Image Source: Zacks Investment Research
Sanmina currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.