SigmaTron International Inc shares sank 47% to $3.98 in early trading on Monday after the electronic manufacturing services company reported “disappointing” first quarter fiscal 2024 financial results, in which its revenue for the period declined 7% year over year to $98.1 million and its earning per share (EPS) dropped to $0.04 from $0.50 a year ago.
SigmaTron cited Federal Reserve interest rate increases, which impacted demand from some of its customers, as a factor for its weaker-than-expected results.
"We have certain customers whose demand remains quite strong and others who have experienced short-term softness," SigmaTron International CEO Gary Fairhead said in a statement.
"I’m expecting this uncertainty to continue through calendar year-end as those customers are indicating to us that they view this softness as a short-term condition and expect their requirements to pick up by year-end," he added.
Fairhead also noted that the geopolitical situation, specifically in Asia, may have an impact how its fiscal year will proceed.
Shares of SigmaTron International have gained 9% year to date.
Contact Sean at sean@proactiveinvestors.com