Sanmina-SCI Corp. Earnings: TOPS Revenue, Misses on Profit
Sanmina – SCI Corporation (NASDAQ:SANM) reported a lower net income in third quarter, missing analysts’ estimates. 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 fell to $8.9 million (11 cents per share) vs. $9.4 million (11 cents per share) a year earlier. This is a decline of 4.9% from the year-earlier quarter.
Revenue: Fell 7.5% to $1.55 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Sanmina – SCI Corporation fell short of the mean analyst estimate of 24 cents per share. It beat the average revenue estimate of $1.49 billion.
Quoting Management: “Revenue for the third quarter was up six percent sequentially as a result of growth in a number of our key markets. However, weak demand in the components business negatively impacted profitability,” stated Jure Sola, Chairman and Chief Executive Officer. “I continue to be pleased with our focus on cash generation and capital structure including our redemption today of the remaining 2016 notes. The macro-environment remains challenging and it’s difficult to predict the future; however, based on new projects and forecasts from our strategic customers, we expect modest revenue growth and margin expansion in the fourth quarter.”
Revenue has fallen for the last three quarters in a row. In the second quarter, revenue declined 6.8% to $1.46 billion while the figure fell 9.6% in the first quarter from the year earlier.
The company fell short of estimates last quarter after beating the mark the quarter before with net income of 27 cents versus a mean estimate of net income of 24 cents per share.
After sitting in the red the quarter before, the company reported a profit last quarter. The company booked a net loss of $8.6 million, or 10 cents per share, in the first quarter.
Looking Forward: Over the past ninety days, the average estimate for the fourth quarter has fallen from 39 cents per share to 30 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. For the fiscal year, the average estimate has moved down from $1.18 a share to 97 cents over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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