Why Sanmina-SCI Soared
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) soared today by as much as 17% after the company posted upbeat earnings and outlook.
So what: Sales in the third quarter totaled $1.55 billion, down slightly from a year ago. Adjusted net income came out to $21.9 million, or $0.26 per share. CEO Jure Sola said that soft demand in the company's components business hurt the bottom line. Still, the top line registered a beat relative to Street expectations.
Now what: Sola said Sanmina-SCI expects modest revenue growth and margin expansion in the fiscal fourth quarter, and the company provided guidance ranging from $1.58 billion and $1.63 billion in sales with adjusted earnings per share in the range of $0.32-$0.38. Strength in the industrial, defense, and medical segments helped compensate for softness in the components business.
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The article Why Sanmina-SCI Soared originally appeared on Fool.com.Fool contributorEvan Niuholds no position in any company mentioned.Click hereto see his holdings and a short bio. The Motley Fool has adisclosure policy. We Fools may not 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.