WASHINGTON (dpa-AFX) - Sanmina Corp. (SANM) Monday reported an increase in profit for the third quarter despite lower revenues, as bottom line was fueled by drop in expenses and lower income tax. Both earnings and revenues for the quarter trumped Street expectations.
Moving ahead, the electronics contract manufacturer detailed a strong outlook for the fourth quarter, sending its shares up 11 percent in after-hours trade on the Nasdaq.
Commenting on the results, CEO Jure Sola said, 'We delivered solid results for the third quarter despite a mixed market environment. Consistent execution coupled with ongoing diversification were key drivers for overall improvement in our financial results.'
San Jose, California-based Sanmina's third-quarter profit rose to $24.5 million or $0.29 per share from $20.7 million or $0.24 per share last year.
Excluding one-time items, adjusted earnings for the quarter was $0.53 per share. Analysts polled by Thomson Reuters estimated earnings of $0.49 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the quarter dropped to $1.54 billion from $1.60 billion a year ago. Analysts had a consensus revenue estimate of $1.52 billion for the quarter.
Profit growth largely reflects lower expenses and reduced income tax provision. Selling, general and administrative costs dropped to $59.7 million from $63.0 million last year. Income tax provisions dropped to $15.8 million from $18.3 million a year ago.
Looking forward to the fourth quarter, the company expects adjusted earnings of $0.52 to $0.58 per share on revenues of $1.55 billion to $1.65 billion. Analysts currently expect earnings of $0.53 per share on revenues of $1.56 billion.
'Our outlook for the fiscal fourth quarter reflects stabilization in the market. We remain confident the second half of the calendar year will continue to improve,' said Sola.
SANM closed Monday's trading at $19.03, up $0.10 or 0.53%. The stock further gained $2.11 or 11.09% in the after-hours trade.
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