Why Sanmina-SCI Plunged

Evan Niu (TMFNewCow), The Motley Fool

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.

What: Shares of Sanmina-SCI (NAS: SANM) plunged today by as much as 18% after the company reported earnings and weak guidance.

So what: Second-quarter revenue added up to $1.46 billion, with adjusted earnings per share of $0.27. The top line was a tad shy of the $1.51 billion consensus estimate, while the bottom line was right on target with the Street's expectations.

Now what: Guidance was the real culprit to the plunge, as Sanmina-SCI sees third-quarter revenue in the range of $1.48 billion and $1.53 billion, with adjusted earnings per share between $0.26 and $0.32. That profit forecast is well below the market's estimate of $0.37 per share. CEO Jure Sola said the company remains hopeful to see improvements during the second half of the calendar year.

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At the time thisarticle was published Fool contributorEvan Niuholds no position in any company mentioned. Check out hisholdings and a short bio. The Motley Fool has adisclosure policy. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days.

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