Updated from Oct. 28
Despite a mixed bag of news for investors in its fourth-quarter financials, shares of
were inching upwards Friday.
In recent trading, shares of the electronics contract manufacturer were up 30 cents, or nearly 4%, to $7.83 on heavy volume.
On Thursday, the company reported fiscal fourth-quarter sales that exceeded analysts' estimates but were a penny light on the bottom line. Sanmina also said first-quarter results could come in below Wall Street's current expectations.
However, the 1-cent miss was apparently due to problems in just one area of the business, and the light numbers were expected and already priced into the stock, said Goldman Sachs analyst Stephen Savas. (Goldman Sachs has an investment banking relationship with Sanmina.)
Under generally accepted accounting principles, the San Jose, Calif.-based contract-electronics maker reported net income of $11.5 million, or 2 cents a share, in the fourth quarter. That reverses a net loss of $85.7 million, or 17 cents a share, in the same period a year earlier.
Excluding charges, Sanmina said it earned non-GAAP net income of $41.8 million, or 8 cents a share, in the fourth quarter, compared with non-GAAP net income of $14 million, or 3 cents a share, a year earlier.
The company's earnings per share were a penny short of the consensus estimate gathered by Thomson First Call but within the company's guided range of 8 cents to 10 cents a share.
Fourth-quarter revenue rose to $3.3 billion, up 7.5% sequentially and 20.8% from the year-earlier period. That was higher than the $3.19 billion expected by Wall Street analysts.
Looking forward, Sanmina expects first-quarter revenue to range from $3.3 million to $3.5 billion and first-quarter non-GAAP earnings to range from 9 cents to 11 cents a share. The midpoint of the company's revenue range is in line with the consensus estimate of $34.8 billion, but the midpoint of the earnings range is short of the 11-cents-a-share consensus estimate for earnings.
Sanmina's weaker-than-expected earnings target comes days after rival
narrowly missed Wall Street's second-quarter sales expectations and
issued tepid guidance for the next two quarters.