DOW JONES NEWSWIRES
Sanmina-SCI Corp. (SANM) swung to a fiscal third-quarter profit
on double-digit sales growth and improved margins.
But shares dropped 8% to $14.59 in after-hours trading as
earnings for the maker of electronic products for other companies
fell short of Wall Street's expectations, though the results were
in line with the company's guidance.
For the current quarter, Sanmina forecast adjusted earnings of
35 cents to 41 cents on revenue of $1.65 billion to $1.7 billion,
while analysts estimated 38 cents and $1.65 billion, respectively,
according to a poll by Thomson Reuters.
Sanmina reported a string of losses last year on weaker demand
for its products. The company responded by cutting costs, managing
its inventory and taking other steps to increase its margins. Last
month, Fitch Ratings upgraded Sanmina, citing its debt reduction
and a refocused strategy to differentiate itself from rivals.
For the quarter ended July 3, Sanmina reported a profit of $21.6
million, or 26 cents a share, compared with a year-earlier loss of
$41.5 million, or 52 cents a share. Excluding items, earnings were
32 cents compared with a loss of 14 cents. Revenue climbed 34% to
$1.63 billion.
In April, Sanmina projected adjusted earnings of 30 cents to 36
cents on revenue of $1.55 billion to $1.65 billion, above analysts'
estimates at the time. Analysts recently estimated 34 cents and
$1.6 billion, respectively.
Gross margin rose to 7.6% from 6.3%.
-By Kathy Shwiff, Dow Jones Newswires; 212-416-2357;
Kathy.Shwiff@dowjones.com