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Sales Spark Solectron

Profit falls, but the company beats on the top line.

First-quarter profit fell at Solectron (CAG) - Get Conagra Brands, Inc. Report despite a 22% rise in sales, but the company guided revenue expectations higher for the second quarter.

The electronics manufacturing services firm said Thursday that net income for the quarter ended Nov. 30 fell to $6 million, or a penny a share, from $24 million, or 3 cents a share, a year earlier.

Excluding items, Solectron earned $47.6 million, or 5 cents a share, from continuing operations in the latest quarter, meeting the Thomson First Call consensus analyst estimate.

Sales rose 22% to $2.9 billion from $2.46 billion a year earlier. First Call was expecting the company to record sales of $2.79 billion.

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For the second quarter, Solectron expects to earn 4 cents to 6 cents a share from continuing operations, excluding items, on revenue of $2.8 billion to $3 billion.

First Call was expecting the company to earn 5 cents a share on revenue of $2.79 billion.

Shares of Solectron were up 8 cents to $3.28 in recent after-hours trading.