Sanmina Misses, Guides Down - TheStreet

Sanmina Misses, Guides Down

The contract electronics company's second-quarter earnings miss estimates by 4 cents.
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Sanmina

(SANM) - Get Report

said Tuesday that second-quarter earnings fell short of estimates on slow demand from the communications and high-end computing markets, and the company guided lower for the coming quarter.

For the quarter ended March 31, excluding items, the contract electronics company reported break-even income, which missed analyst estimates by 4 cents and is a 6-cent drop from a year ago.

Revenue slipped 2.1% from the same period last year to $2.61 billion, flat with Street estimates.

Excluding items, for the third quarter, Sanmina forecast earnings in the range of 1 cent to 3 cents, compared with the 6 cents expected by analysts polled by Thomson First Call. The company sees revenue of $2.55 billion to $2.65 billion, shy of analysts' $2.74 billion estimate.

Chief Executive Officer Jure Sola attributed the disappointing earnings to the slowing demand from the communications and high-end computing markets. "Demand in the third quarter continues to be weaker than traditional levels, but we do see signs of improvement that should contribute positively in the second half of the calendar year," Sola said.

Shares of San Jose, Calif.-based Sanmina recently sank 6.6%, or a quarter, to $3.52 after hours.