Sanmina-SCI 2Q profit in line; outlook disappoints
Electronics manufacturer Sanmina-SCI Corp. on Monday reported improved second-quarter net income, although the company said it was "disappointed" in its revenue and profit margins. Softness in the company's business was led by weakness in the communications market and a delay in defense spending, it said.
Net income in the three months ended April 2 came to $13.1 million, or 16 cents per share, up from $10.1 million, or 12 cents per share, a year earlier. Adjusted to exclude items such as stock-based compensation expenses and restructuring, acquisition and integration costs, earnings would have totaled 30 cents per share — in line with analysts' average forecast according to FactSet.
Revenue rose 3 percent to $1.57 billion from $1.53 billion a year earlier, shy of the $1.58 billion expected by analysts.
Chairman and CEO Jure Sola said the company believes demand is improving and that the second half of the fiscal year will be stronger than the first.
For the third quarter, the company is expecting revenue of $1.6 billion to $1.7 billion, in line with analyst expectations. The company forecast adjusted earnings of 33 cents to 37 cents per share, below the 38 cents per share expected by analysts.
Shares fell 26 cents, or 2.3 percent, to $11.19 in after-hours trading Monday, after closing the regular session up 20 cents, or 1.8 percent, at $11.45.