Investors sold of out electronics component maker Sanmina (SANM -0.32%), and it wasn't hard to figure out why. The company posted fiscal second-quarter results that, while not bad, included guidance that fell notably short of analyst expectations. For this transgression, the market punished it by sending its share price more than 5% lower on the day. The S&P 500 index, meanwhile, did relatively well with "only" a 1.6% decline.
A mixed fiscal second quarter
For the quarter, Sanmina's net sales amounted to $1.83 billion. This was not only down from the $2.32 billion of the same period a year ago, it was lower than the consensus analyst estimate of $1.88 billion.
Non-GAAP (adjusted) net income also headed south, falling to $73.9 million ($1.30 per share) from the year-ago profit of $95.1 million. Yet this bettered the average pundit projection of $1.25 per share.
Sanmina said that its results were affected by macroeconomic uncertainty, but sounded a hopeful note on the immediate future. It quoted its CEO, Jure Sola, as saying that, during the second quarter, "We started to see positive movement in some end-markets that have been notably depressed for the last few quarters."
Weak guidance
Sola added that Sanmina was hopeful that it would see improvements in the fundamentals sequentially through this fiscal year. Its guidance didn't necessarily reflect that -- the company is expecting revenue of $1.8 billion to $1.9 billion for this current (third) quarter, with adjusted net income coming in at $1.22 to $1.32. Both ranges were under the consensus prognosticator estimates of $1.97 billion and $1.36, respectively.
