Sanmina stock falls as executives warn of ‘headwinds for the next couple of quarters’

Shares of Sanmina Corp.
SANM,
-1.03%
slid 14% after hours on Monday after the manufacturing services provider’s fourth-quarter results and first-quarter forecast missed expectations, and the company it expected consumer caution in the months ahead. Sanmina — which helps equipment manufacturers with product design, testing and logistics, and makes its own components — forecast first-quarter revenue of $1.85 billion to $1.95 billion and adjusted earnings per share of $1.20 to $1.30, below FactSet estimates for sales of $2.19 billion and a per-share profit of $1.52. “Our first quarter outlook is down sequentially, driven by some customers continuing to adjust inventory levels and ongoing macroeconomic uncertainty,” Chief Executive Jure Sola said in a statement. “We expect headwinds for the next couple of quarters with an improvement in the back half of the year.” Sanmina reported fourth-quarter net income of $65.4 million, or $1.04 a share, compared with $58.4 million, or 98 cents a share, in the same quarter last year. Sales fell to $2.05 billion from $2.22 billion in the prior-year quarter. Adjusted earnings per share were $1.42. Analysts polled by FactSet expected adjusted earnings per share of $1.54 on sales of $2.15 billion.