WASHINGTON (dpa-AFX) - Contract manufacturer Sanmina Corp. (SANM), Monday reported an increase in profit for the third quarter, as lower costs helped offset a drop in revenues. Both earnings and revenues for the quarter came in ahead of Wall Street expectations.
Going forward, the company detailed its guidance for the fourth quarter, with both earnings and revenues indicated to come in line with current estimates. Following the news, shares of Sanmina rose about five percent in after hours trade on the New York Stock Exchange.
San Jose, California-based Sanmina's third-quarter profit rose to $18.7 million or $0.22 per share from $8.9 million or $0.11 per share last year.
Excluding special items, earnings were $0.40 per share, compared to $0.26 per share a year ago. On average, nine analysts polled by Thomson Reuters expected earnings of $0.35 per share for the quarter. Analysts' estimates typically exclude special items.
Sanmina, said sales for the quarter declined to $1.49 billion from $1.55 billion last year. Analysts estimated revenues of $1.48 billion for the period. Sanmina competes with the likes of Jabil Circuit Inc, Flextronics International and Plexus Corp.
Chief Executive Jure Sola said, 'I am pleased with our third quarter results. We continue to benefit from improved efficiencies and favorable business mix.'
Cost of sales for the quarter decreased to $1.37 billion from $1.44 billion last year. Adjusted operating margin was 3.3 percent, compared to 2.8 percent a year ago.
Moving ahead to the fourth quarter, the company expects adjusted earnings of $0.37 to $0.43 per share with revenues of $1.475 billion to $1.525 billion. Analysts currently estimate earnings of $0.40 per share on revenues of $1.52 billion for the quarter.
'Our outlook for the fourth quarter is modest growth with further improvements in our operating model. I am excited about our future as we continue to invest in people and technology to create more value for our customers,' stated Sola.
SANM closed Monday's trading at $15.26, up $0.06 or 0.39%. The stock further gained $0.74 or 4.85% in after-hours trade.
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