Boston, MA 04/23/2014 (wallstreetpr) – Sanmina Corp (NASDAQ:SANM) reported fiscal 2014 second quarter results that exceeded expectations. The management linked the strong performance to various improvements and adjustments in the company, promising that revenue and profits will continue to improve.
Shares of the company rallied up in the post-market session yesterday, and they continue to trend upwards.
The CEO predicts good news to continue
The excitement generated by a strong second quarter results will not be short-lived. According to Sanmina CEO Jure Sola, as demand improves, and the company launches new products into the market, revenue and profits can only move upwards in the coming quarters.
The CEO also cited continued investment on distinctive technology as a source of strength for the company in retaining customers and attractive, consistent revenue. Moreover, diversification has proven to be a great way for the company to attract higher revenue and to balance operations for enhanced profitability.
That being said, the CEO expects the company to continue delivering good news in the future reporting.
Internal improvements
Sanmina Corp (NASDAQ:SANM) continues to put its costs and expenses under control. The company expects its austerity measures to positively impact earnings and lead to significant savings that can be returned to shareholders in the forms of a dividend hike, and higher shares repurchase program.
Earnings in perspective
Sanmina Corp (NASDAQ:SANM), a provider of printed circuits and computer hardware, announced second quarter profit of $20.8 million or $0.24 per share. That compared with a profit of $21.2 million or $0.25 per share in the comparable quarter a year earlier. The adjusted earnings in the latest quarter were $0.44 per share against $0.30 per share a year earlier.
Revenue in the latest quarter was up 3.4 percent to $1.48 billion.
It predicted revenue to be in the range of $1.43 and $1.48 billion. Earnings were predicted to be in the range of $0.36 and $0.42 per share.
The company announced gross margin jumped to 8.1 percent in the second quarter compared to 7 percent in the previous quarter.
Next quarter guidance
Sanmina Corp (NASDAQ:SANM) expects to generate revenue in the range of $1.5 and $1.6 billion in the second quarter. Earnings per share in the quarter are expected to be in the range of $0.45 and $0.49. On average, analysts expect the company to report earnings per share of $0.43 on revenue of $1.51 billion.
