Published July 23, 2012
Sanmina - SCI (SANM) posted a decrease in net income in the most recent quarter, falling short of analysts' estimates.
Earnings and Revenue
The company posted revenues above analyst predictions, though the company's EPS came up short of expectations. The company reported EPS of 11 cents a share versus the 24 cents a share estimate and revenues of $1.55 billion versus the $1.49 billion estimate.
The company's net income for the quarter was $8.9 million. This is a 4.9% decline from last year. Revenue fell 7.5% from $1.67 billion in the same period last year.
Company Fundamental Trends
The company posted a profit last quarter after reporting a net loss of $8.6 million or a loss of 10 cents per share in the prior quarter. Last quarter marks the third in a row in which The company has seen falling revenue on a year-over-year basis.
History Against Expectations
The company missed estimates last quarter after surpassing the mark the quarter before. It reported net income of 27 cents versus a mean estimate of net income of 24 cents per share.
"Revenue for the third quarter was up six percent sequentially as a result of growth in a number of our key markets. However, weak demand in the components business negatively impacted profitability," stated Jure Sola, Chairman and Chief Executive Officer. "I continue to be pleased with our focus on cash generation and capital structure including our redemption today of the remaining 2016 notes. The macro-environment remains challenging and it's difficult to predict the future; however, based on new projects and forecasts from our strategic customers, we expect modest revenue growth and margin expansion in the fourth quarter."
Estimates provided by Zacks Investment Research and company fundamentals from Xignite Financials.