Investors sold of out electronics component maker Sanmina (SANM -6.99%), and it wasn't hard to figure out why. The company posted fiscal second-quarter results that, while not bad, included guidance that fell notably short of analyst expectations. For this transgression, the market punished it by sending its share price more than 5% lower on the day. The S&P 500 index, meanwhile, did relatively well with "only" a 1.6% decline.
A mixed fiscal second quarter
For the quarter, Sanmina's net sales amounted to $1.83 billion. This was not only down from the $2.32 billion of the same period a year ago, it was lower than the consensus analyst estimate of $1.88 billion.
Non-GAAP (adjusted) net income also headed south, falling to $73.9 million ($1.30 per share) from the year-ago profit of $95.1 million. Yet this bettered the average pundit projection of $1.25 per share.
Sanmina said that its results were affected by macroeconomic uncertainty, but sounded a hopeful note on the immediate future. It quoted its CEO, Jure Sola, as saying that, during the second quarter, "We started to see positive movement in some end-markets that have been notably depressed for the last few quarters."
SANM Sanmina
NASDAQ · As of 11:05 AM ET 10/15/26
Weak guidance
Sola added that Sanmina was hopeful that it would see improvements in the fundamentals sequentially through this fiscal year. Its guidance didn't necessarily reflect that -- the company is expecting revenue of $1.8 billion to $1.9 billion for this current (third) quarter, with adjusted net income coming in at $1.22 to $1.32. Both ranges were under the consensus prognosticator estimates of $1.97 billion and $1.36, respectively.
