Contract electronics manufacturer Sanmina-SCI Corp. (SANM) Wednesday reported a swing to profit in the third quarter as revenues increased 13.8% from last year. Adjusted earnings for the quarter came in above Street expectations. The company provided its earnings and revenue outlook for the fourth quarter.
San Jose, California-based Sanmina-SCI recorded third-quarter GAAP net income of $15.33 million or $0.03 per share compared to a loss of $27.64 million or $0.05 per share in the year-ago quarter. On a non-GAAP basis, net income was $38.18 million or $0.07 per share compared to a loss of $22.81 million or $0.04 per share in the in the same quarter last year.
On average, ten analysts surveyed by First Call/Thomson Financial expected earnings of $0.04 per share for the quarter.
Income from continuing operations was $11.97 million or $0.02 per share compared to a loss of $42.20 million or $0.08 per share in the last-year quarter.
Net sales for the third quarter advanced 13.8% to $1.90 billion from $1.67 billion in the prior-year quarter. Analysts expected the company to report sales of $1.82 billion for the quarter.
Gross profit climbed to $139.64 million from $95.06 million in the year-ago quarter. Third-quarter operating profit was $39.74 million compared to an operating loss of $5.52 million in the third quarter of 2007.
Amongst others in the industry, Jabil Circuit Inc. (JBL) reported a substantial increase in third-quarter profit on a 3% increase in revenue, combined with lower costs and expenses. Another contract electronics manufacturer Flextronics International Ltd. (FLEX) is scheduled to report first-quarter results on Thursday, with analysts expecting the company to earn $0.28 per share on revenue of $8.30 billion.
Jure Sola, Sanmina-SCI Chairman, commented, "With the completion of the sale of our personal computing business and our restructuring initiatives largely behind us, I believe we will be able to sustain our financial improvements despite the challenging economic environment."
On July 3, analysts at RBC Capital Markets upgraded Sanmina-SCI to 'sector perform' from 'underperform' and set the target price at $1.50. In a research note, the analysts indicated that the upgrade was based on valuation, following the recent decline in the company's share price. There are, however, continued concerns surrounding Sanmina-SCI's low capacity utilization, cost structure and unprofitable components business, said the analysts.
For the nine-month period, the company reported a GAAP net loss of $1.17 million compared to a loss of $25.52 million or $0.05 per share in the corresponding period last year. On a non-GAAP basis, the company posted net income of $87.39 million or $0.16 per share for the period, up from $12.63 million or $0.02 per share last year. Year-to-date sales advanced to $5.50 billion from $5.38 billion in the same period a year earlier.
For the fourth quarter, the company expects earnings on a non-GAAP basis from continuing operations to be in the range of $0.05 per share to $0.07 per share. Fourth-quarter revenues are estimated between $1.8 billion and $1.9 billion. Analysts currently anticipate earnings of $0.05 per share on revenues of $1.87 billion for the quarter.
Additionally, the company announced an amendment to its certificate of incorporation, allowing it to affect a reverse split of its outstanding and authorized Common Stock within a range of one-for-three to one-for-ten.
SANM ended Wednesday's trading at 1.37, down 3.52%, on a volume of about 14.08 million shares. During the extended session, the stock gained $0.08 or 5.84%, trading at $1.45. The stock has been moving in a range of $1.05 to 3.22 for the past twelve months, with a three-month average volume of about 6.24 million shares.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.