Sanmina Corp (NASDAQ: SANM)
Shares of Sanmina ran up $5.95, or 21.83% to $33.20 in pre-market trading on Tuesday after beating on fiscal first-quarter revenue and earnings. The electronics manufacturing services company also provided a stronger-than-expected guidance for its second fiscal quarter ending March 30.
Sanmina also announced that CFO David Anderson will leave the company and a search for his permanent replacement has begun. Shares of the San Jose, California-based firm have gained 13% since the beginning of the year.
SANM Earnings & Outlook
Sanmina posted net income of $38 million, or $0.54 per share for its fiscal first-quarter. In the same period a year earlier, the company made a loss of $154.9 million, or $2.16 per share. Excluding special items such as stock-based compensation, the company earned $59.17 million or $0.83 per share, compared with $36.5 million, or $0.48 per share in prior-year period.
Analysts had called for adjusted earnings of $0.71 per share, based on figures compiled by Refinitiv. Revenues for the three months to Dec 29 came to $2.19 billion, up from $1.74 billion in the earlier-year period and ahead of analysts’ estimates for $1.9 billion.
Looking ahead, the company expects fiscal second-quarter earnings to be in the range of $0.70 to $0.80 per share. Analysts predict adjusted earnings of $0.66 per share for the quarter. Sanmina hopes to report revenues of between $1.9 billion to $2 billion for the quarter, while model revenues of $1.83 billion.
Sanmina CEO Comments
“We delivered revenue of $2.19 billion, up 16.6 percent sequentially, operating margin expanded 80 basis points from last quarter to 3.9 percent and earnings per share were up 40 percent to $0.83 compared to the prior quarter. Our first quarter financial performance reflects solid momentum across all of our end-markets,” stated Michael Clarke, Chief Executive Officer.
“Looking ahead, our customer base and pipeline remain solid. Based on our solid first quarter results and with our outlook for the second quarter, we are confident we will profitably grow revenue and strengthen our financial results in fiscal 2019,” stated Clarke.
Sanmina Corp. Profile
Sanmina Corp. engages in the provision of integrated manufacturing solutions, components, products and repair, logistics, and after-market services. It operates through the Integrated Manufacturing Solutions (IMS); and Components, Products, and Services (CPS) segments. The IMS segment consists of printed circuit board assembly and test, final system assembly and test, and direct-order-fulfillment.
The CPS segment includes interconnect systems and mechanical systems; radio frequency (RF), optical and microelectronic, and enterprise solutions; defense and aerospace products; cloud-based manufacturing execution software; and design, engineering, logistics, and repair services. The company was founded by Jure Sola in 1980 and is headquartered in San Jose, CA. – CNN Money