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Sanmina – SCI Corporation (NASDAQ:SANM) reported net income above Wall Street’s expectations for the fourth quarter. Sanmina-SCI is a provider of customized integrated electronics manufacturing services. It provides these services to original equipment, communications, enterprise computing, and storage and multimedia manufacturers.
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Sanmina – SCI Corporation Earnings Cheat Sheet
Results: Net income for Sanmina – SCI Corporation rose to $164.2 million ($1.96 per share) vs. $18.1 million (22 cents per share) in the same quarter a year earlier. This marks a substantial increase from the year-earlier quarter.
Revenue: Fell 7% to $1.58 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Sanmina – SCI Corporation reported adjusted net income of 46 cents per share. By that measure, the company beat the mean estimate of 29 cents per share. It beat the average revenue estimate of $1.49 billion.
Quoting Management: “I am pleased with our fourth quarter results and what we accomplished in fiscal 2012 despite the challenging economic environment. Modest revenue growth and expanded operating margins in the quarter were in line with our expectations. We generated very strong cash flow from operations of $121 million for the quarter and $215 million for the fiscal year,” stated Jure Sola, Chairman and Chief Executive Officer. “We continue to invest in leading technology, products and services which offer a distinct advantage to our customers. We have the right strategy in place, with a strong customer base and we are uniquely positioned for the future,” Sola continued. “Our first quarter fiscal 2013 guidance reflects continued uncertainty in the market. Though the macro-environment is challenging, we have taken action to position us for improved performance in fiscal 2013,” concluded Sola.
Revenue has dropped for four quarters in a row. Revenue declined 7.5% to $1.55 billion in the third quarter. The figure fell 6.8% in the second quarter from the year earlier and dropped 9.6% in the first quarter from the year-ago quarter.
The company topped expectations last quarter after falling short of forecasts in the third quarter with net income of 21 cents versus a mean estimate of net income of 24 cents per share.
Cost of sales dropped to $1.46 billion, down 6.4% from the year-earlier quarter. Last quarter, cost of sales was 92.7% of revenue versus 92.1% a year earlier.
Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the first quarter of the next fiscal year is 32 cents per share, down from 33 cents ninety days ago. The average estimate for the fiscal year is 95 cents per share, falling from 96 cents thirty days ago.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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