Sanmina – SCI Corp Earnings: After Four Straight Increases, Revenue Drops as Net Income Falls

Wall St. Cheat Sheet

Sanmina – SCI Corporation reported its results for the first quarter. Sanmina-SCI is a provider of customized integrated electronics manufacturing services. It provides these services to original equipment, communications, enterprise computing, and storage and multimedia manufacturers.

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Sanmina – SCI Earnings Cheat Sheet for the First Quarter .

Results: Net income for Sanmina – SCI Corporation fell to $8.6 million (10 cents per share) vs. $28.4 million (34 cents per share) a year earlier. This is a decline of 69.8% from the year earlier quarter.

Revenue: Fell 9.6% to $1.5 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: SANM reported adjusted net income of 28 cents per share. By that measure, the company beat the mean estimate of 27 cents per share. It fell short of the average revenue estimate of $1.56 billion.

Quoting Management: “The revenue decline in the first quarter was caused by weakness in the Communications Networks segment and the Thailand floods that impacted shipments to some Enterprise Computing & Storage, and Multimedia customers,” stated Jure Sola, Chairman and Chief Executive Officer. “While our second quarter remains challenging, input from our customers indicates we should see improvements in the second half of 2012.”

Key Stats:

A year-over-year revenue decrease last quarter snaps a streak of four consecutive quarters of revenue increases. The best quarter in that span was the first quarter of the last fiscal year, which saw revenue rise 12.5%.

The company has now seen net income fall in each of the last three quarters. In the fourth quarter of the last fiscal year, net income fell 42.4% from the year earlier, while the figure fell 56.4% in the third quarter of the last fiscal year.

The company topped expectations last quarter after falling short of forecasts in the fourth quarter of the last fiscal year with net income of 32 cents versus a mean estimate of net income of 37 cents per share.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the second quarter has moved down from 34 cents a share to 26 cents over the last ninety days. The average estimate for the fiscal year is $1.28 per share, down from $1.56 ninety days ago.

Competitors to Watch: Jabil Circuit, Inc. , TTM Technologies, Inc. , Benchmark Electronics, Inc. , DDi Corp. , SigmaTron International , Celestica Inc. , SMTC Corporation , Flextronics Intl. Ltd. , CTS Corporation , and Kimball International .

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

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