Updated from Jan. 27

Sanmina's

(SANM) - Get Report

first-quarter earnings shot up 55% from a year ago, driven higher by the company's strategy of opening factories in low-cost countries. The results missed Wall Street forecasts, however, and the company guided the current quarter lower.

The stock lost 76 cents, or 10.3%, to $6.66 Friday morning.

Sanmina earned $24.4 million, or 5 cents a share, in the quarter, compared with $15.8 million, or 3 cents a share, last year. Revenue rose 9.5% from a year ago to $3.25 billion.

Excluding integration and restructuring costs and other special items, Sanmina earned $45.7 million, or 9 cents a share, in the latest quarter. Analysts had been predicting earnings on that basis of 10 cents a share on revenue of $3.4 billion.

"Revenues for the quarter were at the low end of our expectations as our customer end-markets experienced competitive pricing pressures and a sluggish business climate," Sanmina said. Still, margins continued to expand in the quarter and inventory turns were a record 12.3 times.

That success reflected initiatives including "the expansion of manufacturing capabilities in lower cost regions, the implementation of advanced technology, and the streamlining of our organization," Sanmina said.

For the second quarter, Sanmina expects earnings excluding items to come in between 4 cents and 7 cents a share on revenue of $2.85 billion to $3.15 billion. Analysts had been predicting earnings of 9 cents a share on revenue of $3.24 billion.