Sanmina-SCI Corp First Quarter Earnings Sneak Peek

Sanmina-SCI Corporation (NASDAQ:SANM) will unveil its latest earnings tomorrow, Monday, January 28, 2013. 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 29 cents per share, a rise of 26.1% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 32 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 29 cents during the last month. Analysts are projecting profit to rise by 0.8% compared to last year’s $1.25.

Last quarter, the company came in at profit of 46 cents per share against a mean estimate of net income of 29 cents per share, beating estimates after missing them in the previous quarter. In the third quarter of the last fiscal year, it missed forecasts by 3 cents.

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A Look Back: In the fourth quarter of the last fiscal year, profit rose 807.5% to $164.2 million ($1.97 a share) from $18.1 million (22 cents a share) the year earlier, exceeding analyst expectations. Revenue fell 7% to $1.58 billion from $1.7 billion.

Here’s how Sanmina-SCI Corp traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

sanm

Wall St. Revenue Expectations: Analysts predict a rise of 2% in revenue from the year-earlier quarter to $1.53 billion.

Analyst Ratings: With six analysts rating the stock a buy, one rating it a sell and three rating the stock a hold, there are indications of a bullish stance by analysts.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of four-straight quarters of revenue decreases. Revenue fell 9.6% in the first quarter of the last fiscal year, 6.8% in second quarter of the last fiscal year and 7.5% in the third quarter of the last fiscal year and then fell again in the fourth quarter of the last fiscal year of the last fiscal year.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.91 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company regressed in this liquidity measure from 2.02 in the third quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased 5.4% to $1.22 billion while assets decreased 0.4% to $2.33 billion.

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