Sanmina-SCI Third Quarter Earnings Sneak Peek

Sanmina-SCI Corporation (NASDAQ:SANM) will unveil its latest earnings on Monday, July 23, 2012. Sanmina-SCI is a provider of customized integrated electronics manufacturing services. It provides these services to original equipment, communications, enterprise computing, and storage and multimedia manufacturers.

Sanmina-SCI Corporation Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 24 cents per share, a decline of 31.4% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 33 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 25 cents during the last month. Analysts are projecting profit to rise by 17.1% versus last year to 97 cents.

Past Earnings Performance: The company beat estimates last quarter after falling short in the prior two. In the second quarter, the company reported profit of 27 cents per share versus a mean estimate of net income of 24 cents per share. In the first quarter, the company missed estimates by 4 cents.

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A Look Back: In the second quarter, the company swung to a loss of $1.4 million (2 cents a share) from a profit of $13.1 million (16 cents) a year earlier, but beat analyst expectations. Revenue fell 6.8% to $1.46 billion from $1.57 billion.

Stock Price Performance: Between April 20, 2012 and July 17, 2012, the stock price fell $3.10 (-29.3%), from $10.58 to $7.48. The stock price saw one of its best stretches over the last year between March 27, 2012 and April 2, 2012, when shares rose for five straight days, increasing 4.2% (+47 cents) over that span. It saw one of its worst periods between May 8, 2012 and May 16, 2012 when shares fell for seven straight days, dropping 14.5% (-$1.21) over that span.

Wall St. Revenue Expectations: Analysts are projecting a decline of 10.8% in revenue from the year-earlier quarter to $1.49 billion.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of two-straight quarters of revenue declines. Revenue fell 9.6% in the first quarter and dropped again in the second quarter.

Analyst Ratings: There are six out of 11 analysts surveyed (54.5%) rating Sanmina-SCI a buy.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.17 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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