Sanmina ( NASDAQ: SANM ) shares have continue to edge higher after the company reported better-than-expected fiscal third quarter results and issued an upside guidance for fourth quarter.
On Monday, the electronics manufacturing services company reported revenue of $2.02B that grew 21.8 Y/Y and ~5.6% from the prior quarter. Revenue also exceeded the high-end of the firm's outlook of $1.825B to $1.925B.
The company attributed the top-line growth to "strong customer demand and excellent coordination with suppliers and customers to help mitigate material challenges."
Adj. diluted earnings per share came to $1.30, exceeding Wall Street estimates as well as the upper-end of the firm's outlook range of $1.05 to $1.15. Adj. gross margin improved to 8.4% vs. 8.1% in the prior quarter, primarily due to higher revenues and a more favorable product mix.
Sanmina ( SANM ) ended the quarter with a healthy balance sheet, holding $493M in cash and cash equivalents. Cash generation also continued to be strong in Q3; cash flow from operations was $102M and free cash flow was $65M.
For Q4, the company expects EPS of $1.27-$1.37, excluding non-recurring items, vs. $1.20 consensus and revenue of $1.95B-$2.05B vs. $1.91B consensus.
Sanmina ( SANM ) shares are currently up ~8% .
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Sanmina stock gains 8% on strong Q3 results