Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
So what: President and COO Hari Pillai has resigned effective immediately, but will still consult for the company under terms that are not yet finalized. Management indicated that non-GAAP EPS for the current quarter, which ends April 2, will likely land between $0.28 and $0.32, well below the consensus estimate of $0.41.
Now what: Sanmina-SCI does not plan to replace Pillai; the CEO will take over his duties. Management blamed the downward guidance on delays stemming from federal budget uncertainty, a labor strike in India, and short-term softness in the optical market. If the challenges are really as short-term as described, the stock’s P/E ratio of 9.2 could make this an attractive entry point.
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Fool contributor Cindy Johnson does not own shares of any company named above. 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.