The 10-second takeaway
For the quarter ended March 31 (Q2), Sanmina-SCI missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share dropped to a loss.
Margins contracted across the board.
Sanmina-SCI recorded revenue of $1.46 billion. The eight analysts polled by S&P Capital IQ foresaw revenue of $1.51 billion on the same basis. GAAP reported sales were 6.8% lower than the prior-year quarter's $1.57 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.27. The nine earnings estimates compiled by S&P Capital IQ anticipated $0.27 per share on the same basis. GAAP EPS were -$0.02 for Q2 versus $0.16 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 7.3%, 10 basis points worse than the prior-year quarter. Operating margin was 2.5%, 60 basis points worse than the prior-year quarter. Net margin was -0.1%, 90 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.57 billion. On the bottom line, the average EPS estimate is $0.36.
Next year's average estimate for revenue is $6.22 billion. The average EPS estimate is $1.33.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 117 members out of 143 rating the stock outperform, and 26 members rating it underperform. Among 41 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 31 give Sanmina-SCI 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-SCI is hold, with an average price target of $11.64.
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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. 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.