Sanmina-SCI Shares Surge 15% As Q4 Results Top Estimates, Rosy Outlook

(RTTNews) - Shares of Sanmina-SCI Corp. (SANM) surged nearly 15 percent in extended trade on Monday after the electronics contract manufacturer reported results for the fourth quarter that topped analysts' expectations. The company also provided earnings outlook for the first quarter, well above Street view.

The company also reported a profit for the fourth quarter that surged from last year, sales growth and improved operating margins amid lower expenses.

"Solid execution coupled with stable demand from a majority of our market segments were the key drivers for overall improvement in our financial results. Revenue for the fourth quarter was up 5 percent sequentially and 12 percent over the fourth quarter last year," Chairman and CEO Jure Sola said in a statement.

The San Jose, California-based company reported net income of $132.50 million or $1.52 per share for the fourth quarter, sharply higher than $38.80 million or $0.44 per share in the prior-year quarter.

Excluding items, adjusted net income for the quarter was $53.41 million or $0.61 per share, compared to $39.88 million or $0.46 per share in the year-ago quarter.

On average, nine analysts polled by Thomson Reuters expected the company to report earnings of $0.54 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter grew to $1.69 billion from $1.51 billion in the same quarter last year, and topped eight Wall Street analysts' consensus estimate of $1.63 billion.

As a percentage of sales, operating margin for the quarter expanded 60 basis points to 3.6 percent from last year's 3.0 percent.

Total operating expenses for the quarter edged down to $70.08 million from $70.65 million in the prior-year quarter.

Looking ahead to the first quarter, Sanmina-SCI anticipates earnings in a range of $0.55 to $0.60 per share, on projected revenues between $1.65 billion and $1.70 billion. Street is currently looking for earnings of $0.49 per share, on quarterly revenues of $1.58 billion.

"Execution of our core strategy has delivered consistent and predictable results. We remain focused on the quality of our revenue, expanding our capabilities and providing value to our customers. With our revenue base exiting 2014, we are optimistic that 2015 will be another growth year for Sanmina," Sola added.

SANM closed Monday's regular trading session at $19.36, down $0.11 or 0.56% on a volume of 0.74 million shares. However, the stock surged $2.82 or 14.57% in after-hours trading.