Sanmina Corporation (NASDAQ: SANM)
Sanmina Corporation is a global equipment manufacturer based out of San Jose, CA, that specializes in technology related industries, dealing predominantly with communications and computer hardware sectors.
SANM Earnings and Outlook
Sanmina Corporation’s shares exceeded all expectations and surged over 11% in after hours trading on Monday afternoon. In a report published Tuesday, Sanmina’s rating was upgraded from Underperform to Neutral by Longbow analyst Joe Wittine. This was likely due to Sanmina’s Q3 results, which surpassed all initial predictions. It earned revenue of $1.54 billion (0.53 per share), while analysts expected it to reach $1.52 billion or 0.49 per share. The third quarter concluded at the end of June. The fourth quarter has a strong outlook. Investing.com
Sanmina Corporation’s CEO’s Comments
“We delivered solid results for the third quarter despite a mixed market environment. Consistent execution coupled with ongoing diversification were key drivers for overall improvement in our financial results. We generated excellent cash flow from operations for the quarter which allowed us to accelerate our strategic initiatives and execute our share repurchase program creating value for our customers and shareholders.” said Jure Sola, CEO of Sanmina Investing.com
SANM gapped up today to $21.50 up from yesterday’s close of $19.03 which is a 13% increase on a favorable earnings announcement. Taking a look at the daily chart there has been a wide range for the stock from the 52 week lows of $16.57 on October 14, 2014 to highs of 26.08 on November 6, 2014. The stock has broke the 50 day moving average of 20.50 with its gap up today and is approaching the 200 day moving average of 22.08. The first significant resistance level for the stock will be at $22 which it reached on June 23 and May 14 forming a double top on a 3 month chart. I would look for some consolidation at current price levels to see if the stock can hold the gap up price. If it is able to break thru the $22 price level the next possible resistance would be $25.
Sanmina Corporation provides integrated manufacturing solutions, components, products and repair, logistics, and after-market services worldwide. It offers product design and engineering services, including initial development, detailed design, prototyping, validation, preproduction, and manufacturing design; manufacturing of components, subassemblies, and complete systems; final system assembly and test; direct order fulfillment and logistics, and supply chain management services; and after-market product service and support. The companys components and products comprise printed circuit boards, backplanes and backplane assemblies, cable assemblies, mechanical systems, and optical and radio frequency components and modules. It provides its services primarily to original equipment manufacturers in the communications networks, computing and storage, multimedia, industrial and semiconductor capital equipment, defense and aerospace, medical, energy and clean technology, and automotive industries. The company was formerly known as Sanmina-SCI Corporation and changed its name to Sanmina Corporation in November 2012. Sanmina Corporation was founded in 1980 and is headquartered in San Jose, California. Yahoo Finance