Shares of Sanmina Corp. dropped by 14% in after-hours trading on Monday following the release of the manufacturing services provider's fourth-quarter results and first-quarter forecast. The company's performance fell short of expectations, and it anticipates a sense of cautiousness from consumers in the upcoming months.
Q1 Forecast Falls Below Expectations
Sanmina, known for assisting equipment manufacturers with their product design, testing, and logistics, in addition to producing its own components, projected first-quarter revenue in the range of $1.85 billion to $1.95 billion. Similarly, the adjusted earnings per share were estimated to be between $1.20 and $1.30. These figures were below FactSet's estimates, which predicted sales of $2.19 billion and a profit of $1.52 per share.
Chief Executive Comments on Outlook
Jure Sola, the Chief Executive of Sanmina, acknowledged the decline in the company's first-quarter outlook due to some customers adjusting their inventory levels and the ongoing uncertainty in the macroeconomic landscape. He stated, "We expect headwinds for the next couple of quarters with an improvement in the back half of the year."
Q4 Performance Highlights
Sanmina reported a net income of $65.4 million, or $1.04 per share, for the fourth quarter, compared to $58.4 million, or 98 cents per share, for the same period last year. Sales dipped from $2.22 billion in the prior-year quarter to $2.05 billion in the latest quarter. Adjusted earnings per share for this quarter were $1.42, falling short of the FactSet consensus estimate of $1.54 per share.
The overall Q4 results and the weaker-than-expected Q1 forecast led to a significant decline in Sanmina's stock price. However, the company remains hopeful for a rebound in the latter half of the year.
Popular
All Rights Reserved © 2024
Write Your Comment