tumbled nearly 9% Thursday after a Morgan Stanley analyst cut earnings estimates for the company.
The electronics contract manufacturer closed the regular trading day down 20 cents at $8.27, and was recently slipping another 3 cents in after-hours trading.
Morgan Stanley analyst Scott Craig wrote that he sees weakness in the company's component businesses, including printed circuit boards and enclosures that the rest of its business well not be able to offset.
Craig cut his EPS estimate for the third quarter by a penny to 6 cents, in line with consensus and the company's guidance; he left his revenue estimate unchanged at $3.1 billion. For the fourth quarter, Craig cut his EPS estimate 2 cents to 9 cents and also left revenue estimates unchanged at $3.3 billion. Analysts polled by Thomson First Call expect earnings of 9 cents a share on sales of $3.2 billion.
Prior to Thursday's decline, Wall Street was already unhappy with the company; shares had fallen more than 22% since Sanmina announced second-quarter earnings on April 20.
Earlier in the week, Sanmina-SCI agreed to acquire circuit board maker
for $79 million in cash. The acquisition, said Craig, provides Sanmina-SCI with its first circuit board facility in China as well as expanded low-end capabilities.
The acquisition is another sign that the electronics contract manufacturing industry is returning to normal, and is adding capacity after years of cutting back. Earlier this week, sector leader
clinched a long-awaited deal to buy