logo
  Join        Login             Stock Quote

Sanmina-SCI (SANM) Drops After Guiding Q3 Below Street

 April 23, 2012 04:43 PM
 


(By Balaseshan S) Sanmina-SCI Corp. (NASDAQ:SANM), an integrated manufacturing services company, reported a second quarter loss due to anticipated challenge of relatively flat demand across most of its markets and a decline in the multimedia segment. Further, the company guided third quarter below Street's view, sending its shares down 4.97% in aftermarket.

Loss for the second quarter was $1.44 million or $0.02 per share, compared to a profit of $13.07 million or $0.16 per share last year. Adjusted profit declined to $22.53 million or $0.27 per share from $24.93 million or $0.30 per share.

Sales fell to $1.46 billion from $1.57 billion. Analysts had expected a profit of $0.27 per share on revenue of $1.51 billion.

[Related -Sanmina-SCI Corp. (SANM): Short-Term Technical Strength And Longer-Term Value]

Gross margin declined to 7.3% from 7.4% while operating margin fell to 2.1% from 2.8%. On adjusted basis, gross margin decreased to 7.4% from 7.5% while operating margin fell to 3.1% from 3.4%.

Chief Executive Jure Sola said as expected, the company's second quarter continued to be challenged by relatively flat demand across most of its markets and a decline in the multimedia segment.

Looking ahead into the third quarter, the company expects adjusted earnings of $0.26 to $0.32 per share and revenue of $1.475 billion to $1.525 billion, while Street predicts profit of $0.37 per share on revenue of $1.57 billion.

Net interest expense savings is expected to be about $20 million on an annual basis. Based on its third quarter outlook and feedback from its customers, the company remains encouraged that it should see improvements in the second half of the calendar year.

[Related -Another Negative Day For The Market]

SANM closed Monday's regular trading down 3.02% at $10.26. The stock has been trading between $6.01 and $12.55 for the past 52 weeks.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageThe Chip Maker Short Sellers Should Be Watching

Investing in semiconductor stocks is always tricky. Industry cycles can lead to bumps in the road for the read on...

article imageChicago Fed: US Economic Growth Slowed In October

The pace of US growth slowed more than expected in October, according to this morning’s update of the read on...

article imageHoliday Fever Takes Hold Of Stock Investors, But A Pullback Is Needed

With warmer weather arriving to melt the early snowfall across much of the country, investors seem to be read on...

article imageIs 0% Growth For 90% A Successful Economic Model?

Via Greg Mankiw I read the review of Piketty's book by Deirdre McCloskey. The review reminds me of the read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.