The following is a summary of the Sanmina Corporation (SANM) Q4 2024 Earnings Call Transcript:
Financial Performance:
Sanmina reported Q4 revenue of $2.02 billion, an increase from the guidance of $1.9 billion to $2.0 billion, and up 9.6% sequentially.
Non-GAAP gross profit for Q4 was $175 million, or 8.7% of revenue, which is at the higher end of outlook and a 20-basis point increase sequentially.
Non-GAAP operating profit for Q4 was $107 million, or 5.3% of revenue, reflecting stability in operating margin despite increased operating expenses.
Business Progress:
Sanmina experienced revenue growth across the majority of its end markets, particularly in communication networks and cloud infrastructure.
The company is making strategic investments to enhance technologies and capabilities, particularly focusing on cloud data center solutions and AI architecture.
Opportunities:
Sanmina forecasts high-single-digit revenue growth for FY '25, driven by customer forecasts, new and existing programs.
Expansion into high-technology areas like AI-driven cloud infrastructure is expected to provide new business opportunities.
The company sees potential for growth in industrial sectors with energy projects, factory automation, and safety equipment, along with ongoing opportunities in medical devices reflecting steady demand.
Risks:
Sanmina notes ongoing inventory adjustments with its customers, suggesting potential short-term fluctuations in demand.
The company points to 'targeted investments' which might impact short-term profitability while aiming for long-term growth.
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