Market Overview

Sanmina's Earnings Outlook


Sanmina (NASDAQ: SANM) unveils its next round of earnings this Tuesday, November 10. Here is Benzinga's everything-that-matters guide for the earnings announcement.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Sanmina EPS will likely be near $0.77 while revenue will be around $1.79 billion, according to analysts. Sanmina EPS in the same period a year ago totaled $0.84. Revenue was $1.89 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to match the consensus estimate, earnings would be down 8.33%. Sales would be down 5.39% from the same quarter last year. The company's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2019
EPS Estimate 0.35 0.55 0.69 0.78
EPS Actual 0.86 0.32 0.79 0.84
Revenue Estimate 1.56 B 1.62 B 1.77 B 1.95 B
Revenue Actual 1.66 B 1.59 B 1.84 B 1.89 B

Stock Performance

Shares of Sanmina were trading at $26.7 as of November 06. Over the last 52-week period, shares are down 12.52%. Given that these returns are generally negative, long-term shareholders are probably unhappy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Sanmina is scheduled to hold the call at 17:00:00 ET and can be accessed here.


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Posted-In: Earnings