Sanmina Corp. (SANM: Quote), a provider of electronics manufacturing services, Monday reported a plunge in first-quarter profit, hurt by lower gross margin, one-time loss related to interest rate swap, and a slight decline in revenues as demand waned across most businesses. The company's earnings as well as revenues for the quarter came in below Street estimates.
The weak quarterly results were expected as the company in October warned of such an eventuality. Nonetheless, investors were disappointed as the company detailed some weak earnings outlook for the second quarter as well. Sanmina shares are down by more than eight percent in after-hours trade on the Nasdaq.
The San Jose, California-based company reported first-quarter net income of $621 thousand or $0.01 per share, compared with $8.6 million or $0.10 per share last year.
Results for the quarter under review include a nearly $15 million loss on de-designation of interest rate swap.
Excluding items, adjusted earnings for the quarter were $24 million or $0.29 per share, compared with $22.8 million or $0.28 per share a year ago.
On average, nine analysts polled by Thomson Reuters expected earnings of $0.34 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the quarter edged down to $1.49 billion from $1.50 billion in the prior year. Analysts on consensus estimated revenues of $1.53 billion for the quarter.
Gross margin for the quarter slid to 6.5 percent from 7.3 percent last year, while operating margin contracted to 2.1 percent from 2.6 percent.
For the second quarter, the company expects adjusted earnings of $0.26 to $0.32 per share and revenues of $1.40 billion to $1.45 billion. Analysts currently estimate earnings of $0.32 per share on revenues of $1.49 billion.
Sanmina closed Monday at $11.75, up 0.17%. In after hours, the stock tumbled $0.95 or 8.09%.
by RTT Staff Writer
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