Sanmina – SCI Corp Earnings Cheat Sheet: Net Income Sinks

Wall St. Cheat Sheet

Sanmina – SCI Corporation reported its results for the fourth 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 Fourth Quarter

Results: Net income for the printed circuit board company fell to $18.1 million (22 cents per share) vs. $31.4 million (38 cents per share) a year earlier. This is a decline of 42.4% from the year earlier quarter.

Revenue: Rose 0.5% to $1.7 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: SANM reported adjusted net income of 47 cents per share. By that measure, the company beat the mean estimate of 37 cents per share. It beat the average revenue estimate of $1.66 billion.

Quoting Management: “Despite headwinds in the market, we had a solid fourth quarter. I am pleased with our accomplishments in fiscal 2011 as we continued to improve the quality of our customer base and execute on our strategy which was evident in our results,” stated Jure Sola, Chairman and Chief Executive Officer. “Our first quarter fiscal 2012 guidance represents uncertainty in the market, push-outs from customers and potential supply constraints related to the Thailand floods. Fiscal 2012 is difficult to forecast at this time, but I am cautiously optimistic we will deliver improvements. We have the right strategy in place with a strong customer base and we are well positioned to compete in any economic environment.”

Key Stats:

Revenue has risen the past four quarters. Revenue increased 3% to $1.67 billion in the third quarter. The figure rose 2.7% in the second quarter from the year earlier and climbed 12.5% in the first quarter from the year-ago quarter.

The company has now beaten estimates the last two quarters. In the third quarter, it topped expectations with net income of 35 cents versus a mean estimate of net income of 30 cents per share.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the first quarter of the next fiscal year has moved down from 43 cents a share to 39 cents over the last ninety days. The average estimate for the fiscal year is $1.38 per share, down from $1.39 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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(Source: Xignite Financials)

 

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