On November 4, 2024, Sanmina Corp (SANM, Financial) released its 8-K filing detailing the financial results for the fourth quarter and fiscal year ending September 28, 2024. Sanmina Corp, a leading provider of integrated manufacturing solutions, operates in two primary segments: Integrated Manufacturing Solutions and Components, Products, and Services. The company serves a diverse range of markets, including communications networks, storage, industrial, defense, and aerospace, with a significant presence in the United States, China, and Mexico.
Quarterly and Annual Financial Highlights
Sanmina Corp reported fourth-quarter revenue of $2.02 billion, exceeding the analyst estimate of $1.957 billion. However, the GAAP diluted earnings per share (EPS) of $1.09 slightly missed the estimated $1.10. For the fiscal year 2024, the company achieved revenue of $7.57 billion, surpassing the annual estimate of $7.507 billion, with a GAAP diluted EPS of $3.91, aligning with expectations.
Performance Analysis and Challenges
Sanmina Corp's performance in the fourth quarter was marked by a 9.6% sequential increase in revenue, driven by growth in communications networks and cloud infrastructure markets. Despite the revenue growth, the company faced challenges in maintaining its operating margins, with a GAAP operating margin of 4.4% and a non-GAAP operating margin of 5.3%. These figures highlight the competitive pressures and cost management challenges in the hardware industry.
Financial Achievements and Strategic Initiatives
Sanmina Corp's financial achievements include generating $52 million in cash flow from operations in Q4 and $340 million for the fiscal year. The company also returned value to shareholders by repurchasing 4 million shares for $227 million in fiscal 2024. These actions underscore Sanmina's commitment to enhancing shareholder value and maintaining financial stability.
Key Financial Metrics
Important metrics from the financial statements include:
| Metric | Q4 2024 | FY 2024 |
|---|---|---|
| Revenue | $2.02 billion | $7.57 billion |
| GAAP Operating Margin | 4.4% | 4.4% |
| Non-GAAP Operating Margin | 5.3% | 5.4% |
| Cash Flow from Operations | $52 million | $340 million |
Income Statement and Balance Sheet Overview
Sanmina Corp's income statement reveals a net income attributable to common shareholders of $61.38 million for Q4, with a diluted EPS of $1.09. The balance sheet shows total assets of $4.71 billion, with cash and cash equivalents of $626 million, reflecting a strong liquidity position.
We finished the year with solid momentum. Our fourth quarter revenue was up 9.6 percent sequentially, and non-GAAP diluted earnings per share was up 14.3 percent over the prior quarter and exceeded our outlook," stated Jure Sola, Chairman and Chief Executive Officer of Sanmina Corporation.
Conclusion
Sanmina Corp's fiscal 2024 results demonstrate resilience in a challenging market environment, with notable revenue growth and strategic shareholder returns. The company's focus on operational efficiency and market expansion positions it well for future growth, despite the ongoing challenges in the hardware industry. Investors and stakeholders will be keenly observing Sanmina's performance in the upcoming fiscal year as it aims to capitalize on its strategic initiatives and market opportunities.
Explore the complete 8-K earnings release (here) from Sanmina Corp for further details.
