Sanmina-SCI Beats Estimates

Sanmina-SCI (SANM Quote - Cramer on SANM - Stock Picks) beat Wall Street's first-quarter earnings and revenue expectations, but the company guided revenue lower for the second quarter now underway.

The electronics manufacturing services company said Wednesday that earnings fell to $21.2 million, or 4 cents a share, from $24.4 million, or 5 cents a share, a year earlier. The company benefited this year from a one-time tax adjustment of $64 million, as a result of a settlement with the Internal Revenue Service regarding audits that finished during the quarter.

Excluding items, the company earned 8 cents a share in the latest quarter; analysts surveyed by Thomson First Call predicted that the company would earn 7 cents a share.

Sanmina posted $2.86 billion in revenue for the quarter, just besting Thomson First Call analysts' estimates of $2.85 billion, and meeting the company's estimates of $2.8 billion to $2.9 billion.

However, revenue fell from $3.26 billion a year earlier.

The company predicted a seasonal downturn in its revenue for this quarter, forecasting between $2.6 billion to $2.7 billion. It estimated earnings before items would range between 5 and 7 cents a share.

Wall Street had expected the company to earn 6 cents a share and bring in $2.77 billion in revenue this quarter.

Following the announcement, shares of Sanmina fell 8 cents, or 1.8%, to $4.40 in extended trading.