NEW YORK (AP) -- Sanmina-SCI's stock climbed Tuesday after the electronics company topped Wall Street revenue expectations for the third-quarter and released healthy fourth-quarter revenue projections as well.
THE SPARK: Sanmina-SCI announced late Monday that it earned $8.9 million, or 11 cents per share, for the period ended June 30. That compares with earnings of $9.4 million, or 11 cents per share, a year ago. Adjusted earnings were 26 cents per share, which was still 3 cents short of projections. However, revenue of $1.55 billion was better than the $1.49 billion analysts had expected.
And Sanmina-SCI now anticipates adjusted earnings of 32 cents to 38 cents per share on revenue of $1.58 billion to $1.63 billion. Wall Street had been looking for earnings of 34 cents per share on revenue of $1.53 billion.
THE ANALYSIS: Jim Suva of Citi Investment Research said that the company earnings were hurt by its struggling components business, which includes printed circuit boards and memory modules.
The analyst maintained a "Neutral" rating and raised Sanmina-SCI's price target to $9 from $8.50.
Raymond James' Brian Alexander said in a client note that the company's quarterly revenue performance was helped by better communications revenue and stronger revenue in the industrial, defense and medical segments.
He reaffirmed an "Outperform" rating and $11.50 price target.
SHARE ACTION: Shares of Sanmina-SCI Corp. gained $1.06, or 14.8 percent, to $8.24 in afternoon trading on Tuesday. The stock has traded between $6.01 and $12.55 over the past 52 weeks. The shares are off 26 percent for the year to date.