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SANM Nasdaq· Sanmina Corp
Earnings report Q4 2023

Sanmina Corporation Reports Decrease in Revenue for the Latest Quarter

Segments of revenue

Sanmina Corporation reported net sales of $1.87 billion for the three months ended December 30, 2023, compared to $2.36 billion in the same period last year. This represents a decrease of approximately 20% in revenue.

Strengths

Despite the decrease in revenue, Sanmina Corporation demonstrated resilience in managing its cost of sales, resulting in a gross profit of $160.8 million. The company's ability to control operating expenses, including selling, general and administrative expenses, and research and development costs, contributed to maintaining a positive operating income of $87.6 million.

Challenges

The decline in net sales indicates a challenge for Sanmina Corporation in generating revenue. The company experienced a decrease in demand or faced competitive pressures in its market segments, leading to lower sales figures. The management should closely analyze the factors contributing to this decline and develop strategies to address the challenges.

Noteworthy

Sanmina Corporation generated $126 million in cash from operations during the latest quarter, indicating effective cash management. The company's primary sources of liquidity include cash and cash equivalents of $632 million, a Credit Agreement with $787 million available, and foreign short-term borrowing facilities of $71 million. These sources provide Sanmina Corporation with the necessary liquidity to support its operations and potential investments.

Summary

Sanmina Corporation faced a decline in revenue during the latest quarter, reporting net sales of $1.87 billion compared to $2.36 billion in the same period last year. Despite this challenge, the company demonstrated strengths in managing its cost of sales and controlling operating expenses, resulting in a positive operating income. Sanmina Corporation's effective cash management and available sources of liquidity provide stability for its operations. However, the management should address the factors contributing to the decline in revenue and develop strategies to improve sales performance in the future.

Source documents

Form 10-Q  filed on Jan 31, 2024
128 pages scanned

Reference data

Company financials Q4 revenue 0
Analyst estimates Q4 EPS missed by 0.00%
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