NEW YORK (TheStreet) -- Sanmina Corporation (SANM) - Get Sanmina Corporation Report reported better-than-expected earnings after the bell, sending shares higher in extended trading. Shares topped 6.8% to $15.80, after suffering 2.9% in losses over Monday's session.
Over the December-ended quarter, the San Jose-based chipmaker posted first-quarter net income of 41 cents a share, three cents higher than analysts surveyed by Thomson Reuters had expected. Revenue of $1.45 billion slipped 2.7% from a year earlier, as analysts had anticipated.
Operating income over the quarter was $48.6 million, or 3.4% of revenue, compared to $41.4 million, or 2.8% of revenue, in the first quarter last year.
"Our first quarter results were in line with our expectations," said CEO Jure Sola in a statement.
For the second quarter ending March, management expects revenue between $1.425 billion and $1.475 billion and net income in the range of 36 cents to 42 cents a share.
"Our outlook for the second quarter reflects our view of a soft first half of fiscal 2014. We are encouraged by our customers' forecasts, recent wins and overall market improvements that will drive modest growth for fiscal 2014," said Sola.
TheStreet Ratings team rates SANMINA CORP as a Buy with a ratings score of B. The team has this to say about their recommendation:
"We rate SANMINA CORP (SANM) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, attractive valuation levels and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
- You can view the full analysis from the report here: SANM Ratings Report