Sanmina-SCI Corp Fourth Quarter Earnings Sneak Peek

Sanmina-SCI Corporation (NASDAQ:SANM) will unveil its latest earnings on Monday, October 29, 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 29 cents per share, a decline of 9.4% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 30 cents. Between one and three months ago, the average estimate was unchanged. It has since dropped over the last month. For the year, analysts are projecting profit of 95 cents per share, a decline of 18.8% from last year.

Past Earnings Performance: The company fell short of estimates last quarter after topping forecasts the quarter prior. In the third quarter, it reported net income of 21 cents per share against a mean estimate of 24 cents. Two quarters ago, it beat expectations by 3 cents with profit of 27 cents.

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Stock Price Performance: Between September 25, 2012 and October 23, 2012, the stock price dropped $1.13 (-12.4%), from $9.12 to $7.99. The stock price saw one of its best stretches over the last year between July 23, 2012 and July 27, 2012, when shares rose for five straight days, increasing 21.9% (+$1.57) 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: On average, analysts predict $1.59 billion in revenue this quarter, a decline of 6.5% from the year-ago quarter. Analysts are forecasting total revenue of $6.1 billion for the year, a decline of 7.6% from last year’s revenue of $6.6 billion.

A Look Back: In the third quarter, profit fell 4.9% to $8.9 million (11 cents a share) from $9.4 million (11 cents a share) the year earlier, missing analyst expectations. Revenue fell 7.5% to $1.55 billion from $1.67 billion.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of three-straight quarters of revenue declines. Revenue fell 9.6% in the first quarter and 6.8% in second quarter before falling again in the third quarter.

Analyst Ratings: There are six out of 10 analysts surveyed (60%) rating Sanmina-SCI a buy.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.02 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. The company regressed in this liquidity measure from 2.17 in the second quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 7.9% to $1.16 billion while assets rose 0.5% to $2.33 billion.

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

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