Sanmina Corporation is demonstrating remarkable operational performance, driven by fundamental strengths rather than temporary market sentiment. The electronics manufacturer’s recent stock momentum reflects a powerful combination of exceptional quarterly results, a transformative acquisition, and ambitious revenue growth projections.
Robust Quarterly Performance Exceeds Forecasts
In late July, Sanmina released its third-quarter fiscal 2025 results that significantly outpaced analyst expectations. The company reported revenue of $2.04 billion alongside adjusted earnings per share of $1.53, delivering a positive surprise to the market. Particularly impressive were the operational metrics, including an operating margin of 5.7 percent and substantial operating cash flow generation of $201 million, highlighting the company’s efficient management and strong financial discipline.
Transformative Deal with ZT Systems
The most significant catalyst for investor optimism emerged from Sanmina’s strategic acquisition of the data center business from ZT Systems, a transaction facilitated through AMD. This move positions the company for substantial expansion within the cloud infrastructure sector. Market analysts project this acquisition could nearly double Sanmina’s net revenue volume within three years, adding approximately $5 to $6 billion in annual sales. The transaction is expected to become accretive to adjusted earnings per share within its first year of integration.
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Confident Forward-Looking Guidance
Management has reinforced this positive outlook with confident guidance for the current fourth quarter. The company anticipates revenue between $2.0 and $2.1 billion while maintaining strong operational efficiency with projected margins exceeding 6 percent.
This optimism has translated directly into market performance. Following a brief consolidation period after the July earnings release, Sanmina shares have gathered considerable momentum. The stock recently traded at €104.85, approaching its 52-week high and signaling sustained investor confidence in the company’s growth trajectory and strategic direction.
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