Sanmina's Stock Slumps After Profit, Sales And Outlook Disappoint

Sanmina Corp.'s stock tumbled 8.9% in after-hours trade Monday, after the electronics manufacturing services company reported fiscal second-quarter profit and sales that missed expectations, and provided a downbeat outlook for the current quarter. For the quarter ended March 28, net earnings fell to $14.7 million, or 17 cents a share, from $20.8 million, or 24 cents a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share were 50 cents, below the FactSet consensus of 53 cents. Revenue rose to $1.53 billion from $1.48 billion, below the FactSet consensus of $1.6 billion. For the quarter ended June, the company expects adjusted EPS in the range of 48 cents to 52 cents and revenue of $1.5 billion to $1.55 billion, compared with the FactSet consensus of 56 cents and $1.64 billion, respectively. "Our third quarter outlook reflects continued headwind in our communications networks segment offset by growth in the industrial, medical and defense segment," said Chief Executive Jure Sola. The stock closed Monday with a year-to-date decline of 0.7%, while the S&P 500 has gained 2%.