logo
Share SHARE
FONT-SIZE Plus   Neg

Sanmina-SCI Shares Drop 5% On Q2 Loss, Weak Outlook

Shares of Sanmina-SCI Corp. (SANM) dropped 5 percent in extended trade on Monday after the electronics contract manufacturer provided earnings and revenue forecast for the third quarter of fiscal 2012, well below Street view.

The company also reported a loss for the second quarter compared to a profit last year on lower margins and sales decline. However, both adjusted earnings per share matched analysts' expectations.

"As we expected, our second quarter continued to be challenged by relatively flat demand across most of our markets and a decline in the multimedia segment," Chairman and CEO Jure Sola said in a statement.

The San Jose, California-based company reported a net loss of $1.44 million or $0.02 per share for the second quarter, compared to net income of $13.07 million or $0.16 per share in the prior-year quarter.

Excluding items, adjusted net income for the quarter declined to $22.53 million or $0.27 per share from $24.93 million or $0.30 per share in the year-ago quarter.

On average, ten analysts polled by Thomson Reuters expected the company to report earnings of $0.27 per share for the second quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter declined to $1.46 billion from $1.57 billion in the same quarter last year, and missed nine Wall Street analysts' consensus estimate of $1.51 billion.

As a percentage of revenue, gross margin for the quarter contracted 10 basis points to 7.3 percent from last year's 7.4 percent.

Total operating expenses for the quarter increased to $76.14 million from $72.20 million in the prior-year quarter.

Looking ahead to the third quarter, Sanmina-SCI anticipates adjusted earnings in a range of $0.26 to $0.32 per share, on projected revenues between $1.475 billion and $1.525 billion. Street is currently looking for earnings of $0.37 per share, on quarterly revenues of $1.57 billion.

"Based on our outlook for the third quarter and feedback from our customers, we remain encouraged that we should see improvements in the second half of the calendar year," Sola added.

SANM closed Monday's regular trading session at $10.26, down $0.32 or 3.02% on a volume of 0.67 million shares. The stock lost a further $0.51 or 4.97% in after-hours trading.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Chocolate company Hershey Co. said it will increase the visibility of nutrition information and portion options of its snacks as well as reduce the sweets' calorie count. The move is part of the company's ongoing efforts to offer a broad range of snacks and clear information in response to feedback from consumers, who are shifting to healthier foods. The Coca-Cola Company (KO) reported a profit for the first-quarter of 2017 that declined 20 percent from the prior year. Net revenues declined 11%, reflecting unfavorable impacts from structural changes of 10% and foreign currency of 1%. The company remains on track to deliver its underlying revenue and profit targets for the full year. Eli Lilly and Co. (LLY) reported a loss for the first quarter of 2017 compared to profit in the prior year, primarily hurt by lower operating income, partially offset by higher other income. But, quarterly revenue increased 7 percent, driven by 9 percent pharmaceutical volume growth from Trulicity, Taltz and other new products.
comments powered by Disqus
Follow RTT