Sanmina Misses on the Top and Bottom Lines

Sanmina (NAS: SANM) reported earnings on Jan. 28. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 29 (Q1), Sanmina missed estimates on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue shrank slightly and GAAP earnings per share dropped significantly.


Margins dropped across the board.

Revenue details
Sanmina reported revenue of $1.49 billion. The six analysts polled by S&P Capital IQ expected sales of $1.53 billion on the same basis. GAAP reported sales were 0.5% lower than the prior-year quarter's $1.50 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.29. The seven earnings estimates compiled by S&P Capital IQ predicted $0.34 per share. GAAP EPS of $0.01 for Q1 were 90% lower than the prior-year quarter's $0.10 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 6.5%, 80 basis points worse than the prior-year quarter. Operating margin was 2.1%, 90 basis points worse than the prior-year quarter. Net margin was 0.0%, 60 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.49 billion. On the bottom line, the average EPS estimate is $0.32.

Next year's average estimate for revenue is $6.15 billion. The average EPS estimate is $1.47.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 126 members out of 153 rating the stock outperform, and 27 members rating it underperform. Among 51 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 41 give Sanmina a green thumbs-up, and 10 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Sanmina is outperform, with an average price target of $10.64.

If you're interested in companies like Sanmina, you might want to check out the jaw-dropping technology that's about to put 100 million Chinese factory workers out on the street - and the 3 companies that control it. We'll tell you all about them in "The Future is Made in America." Click here for instant access to this free report.

The article Sanmina Misses on the Top and Bottom Lines originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Learn about investing from the comfort of your own home.

Portfolio Basics

Take the first steps to building your portfolio.

View Course »

Investment Strategies

Learn the strategies you need to build a winning portfolio

View Course »

Add a Comment

*0 / 3000 Character Maximum