Sanmina Corporation (SANM) shares have reached a new 52-week high, touching $76.67 in recent trading. This milestone reflects a significant uptrend for the electronics manufacturing services provider, marking a substantial gain from its position a year ago. Over the past year, Sanmina has witnessed an impressive 32.01% increase in its stock value, showcasing the company's robust performance and investor confidence in its growth trajectory. The achievement of this 52-week high represents a noteworthy highlight for Sanmina's shareholders and underscores the company's potential in the competitive electronics manufacturing sector.
In other recent news, Sanmina Corporation has reported steady Q3 results and anticipates growth in Q4. The company's revenue reached $1.84 billion, marking a slight 0.4% sequential increase. Sanmina's non-GAAP gross margin was 8.5%, and the non-GAAP operating margin was at the low end of the outlook at 5.3%. Despite declines in the industrial and automotive sectors, the communications networks and cloud infrastructure segments witnessed an 8.3% sequential growth.
Sanmina's revenue for Q4 is expected to range from $1.9 billion to $2 billion, indicating forward momentum. The company's strong balance sheet, with $658 million in cash and no debt on its $800 million credit facility, contributes to its robust financial health. Looking ahead, Sanmina aims for stabilization and demand improvement in fiscal year 2025, driven by new programs and positive market trends. These recent developments underscore the company's potential in the competitive electronics manufacturing sector.
InvestingPro Insights
Sanmina Corporation (SANM) has not only hit a new 52-week high but also displays several financial strengths that could be of interest to investors. According to InvestingPro data, Sanmina has a market capitalization of $4.22 billion and maintains a price-to-earnings (P/E) ratio of 18.91, which adjusts slightly to 18.12 when looking at the last twelve months as of Q3 2024. Despite a revenue decline of 16.52% over the same period, the company's gross profit margin stands at 8.45%, indicating some resilience in its profitability.
InvestingPro Tips reveal that Sanmina holds more cash than debt on its balance sheet and has a high shareholder yield, which could be attractive to investors looking for companies with a solid financial footing. Additionally, the stock is noted to trade with low price volatility, providing a potentially stable investment option. Sanmina is also recognized as a prominent player in the Electronic Equipment, Instruments & Components industry and is trading at a low revenue valuation multiple. These factors, coupled with the fact that liquid assets exceed short-term obligations, might offer some assurance regarding the company's financial health.
For investors seeking more in-depth analysis, there are 15 additional InvestingPro Tips available for Sanmina, which can be found at InvestingPro Sanmina. These tips may provide further insights into the company's stock performance and future outlook.
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