WASHINGTON (dpa-AFX) - Electronic manufacturing services provider Sanmina Corp. (SANM), Monday reported a surge in first-quarter profit, helped by lower expenses that offset a decline in sales. Quarterly earnings for the quarter topped Wall Street estimates, while sales fell shy of expectations.
Looking ahead, Sanmina provided some strong adjusted earnings guidance for the second quarter, but revenue outlook was tepid.
Overall, investors cheered the results, sending Sanmina shares up 8 percent in after-hours trade on the Nasdaq.
'We are encouraged by our customers' forecasts, recent wins and overall market improvements that will drive modest growth for fiscal 2014,' said CEO Jure Sola.
The San Jose, California-based company posted quarterly net income of $23 million or $0.26 per share, compared with $621 thousand or $0.01 per share a year ago.
Results for the quarter included interest and other expense of $6 million, compared with $28 million last year.
Excluding items, adjusted earnings for the quarter were $35.5 million or $0.41 per share, compared with $24 million or $0.29 per share in the prior year.
On average, 10 analysts polled by Thomson Reuters expected earnings of $0.38 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the quarter slid to $1.45 billion from about $1.5 billion last year. Analysts expected revenues of $1.46 billion.
Operating margin for the quarter improved to 2.7 percent from 2.1 percent last year.
For the second quarter, Sanmina expects adjusted earnings of $0.36 to $0.42 per share and revenues of $1.425 billion to $1.475 billion. Analysts currently expect earnings of $0.37 per share on revenues of $1.45 billion for the quarter.
Sanmina stock closed Monday at $14.80, down $0.44 or 2.89%, on a volume of 1.8 million shares. In after hours, the stock gained $1.05 or 7.09% at $15.85.
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