The 10-second takeaway
For the quarter ended Sep. 29 (Q4), Sanmina-SCI met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share increased significantly.
Gross margins contracted, operating margins dropped, net margins expanded.
Sanmina-SCI tallied revenue of $1.58 billion. The eight analysts polled by S&P Capital IQ looked for a top line of $1.59 billion on the same basis. GAAP reported sales were 7.0% lower than the prior-year quarter's $1.70 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.46. The nine earnings estimates compiled by S&P Capital IQ averaged $0.34 per share. GAAP EPS of $1.96 for Q4 were much higher than the prior-year quarter's $0.22 per share.
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%, 60 basis points worse than the prior-year quarter. Operating margin was 3.2%, 80 basis points worse than the prior-year quarter. Net margin was 10.4%, 930 basis points better 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 $6.27 billion. The average EPS estimate is $1.47.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 126 members out of 153 rating the stock outperform, and 27 members rating it underperform. Among 43 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 34 give Sanmina-SCI a green thumbs-up, and nine 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 $10.31.
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