Sanmina shares plunged after the manufacturing and logistics solutions firm’s CEO warned that it expects to face headwinds in the coming quarters.
Its shares fell 15% to US$45.11 mid-morning on Tuesday.
With the release of its fourth-quarter and full-year fiscal 2023 financial results after Monday’s closing bell, Sanmina CEO Jure Sola told investors: “We expect headwinds for the next couple of quarters with an improvement in the back half of the year.”
“Our first quarter outlook is down sequentially, driven by some customers continuing to adjust inventory levels and ongoing macroeconomic uncertainty.”
For 1Q ending December 30, 2023, the company guided revenue of $1.85 billion to $1.95 billion and adjusted earnings per share (EPS) between $0.98 to $1.08.
This represents an increase in revenue over the same period in 2022 when it reported sales of $1.76 billion but flat to negative EPS growth over the year-ago quarter’s $1.08.
For 4Q, the company’s revenue fell 7% sequentially as a result of ongoing customer inventory adjustments in the communications end-market as supply chains have improved.
It reported revenue of $2.05 billion, slightly below the company’s forecast of $2.1 billion to $2.2 billion and down from $2.22 billion in the year-ago quarter.
Adjusted EPS of $1.42 was ahead of the Street estimate of $1.29 but fell short of Sanmina’s forecast of $1.57 due to lower revenues.
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