Sanmina shares skyrocketed more than 20 percent on Tuesday after the company reported better-than-expected profit and sales for the last quarter and said this quarter's earnings could top Wall Street expectations as well.
The company is a contract electronics manufacturer specializing in communications networks and semiconductors, among other areas. After Tuesday's jump, its market value was $2.3 billion.
Sanmina reported 50 cents a share in non-GAAP earnings for the fiscal second quarter, topping the 45-cent consensus estimate, according to FactSet. Revenue came in at $1.68 billion versus an estimated $1.64 billion for the quarter, according to FactSet.
"We are particularly encouraged by ramping activities in Auto, Medical and Optical as we believe the runway appears quite encouraging headed into the back half of 2018," wrote Needham analyst Sean Hannan in a note Tuesday. "Aided by recent cost removals, improving yields and other operational efficiencies, we expect SANM to continue to drive improving results through the year and resume a strong earnings growth trajectory."
The company forecast fiscal third-quarter non-GAAP earnings as high as 61 cents per share, above the 55-cent consensus estimate, according to FactSet. Revenue was forecast to be as high as $1.75 billion, above the $1.70 billion estimate.
Despite the jump, Sanmina's shares are still down 16 percent over the last 12 months.