Sanmina Corporation (NASDAQ:SANM) beat Wall Street expectations in its fiscal third quarter, but shares fell 4% after the company issued a weaker-than-expected outlook for the fourth quarter.
For the quarter ended June 28, the company reported adjusted earnings of $1.53 per share, surpassing the $1.42 estimate. Revenue reached $2.04 billion, beating the consensus of $1.98 billion and marking a 10.9% increase from $1.84 billion a year earlier.
Despite strong results, investor sentiment turned negative due to guidance that fell short. Sanmina projected fourth-quarter revenue between $2.0 billion and $2.1 billion, below analyst expectations of $2.13 billion. Earnings guidance of $1.52 to $1.62 per share also missed the consensus midpoint.
The company reported a non-GAAP operating margin of 5.7%, an improvement over 5.3% in the prior-year quarter. Operating cash flow was $201 million, with free cash flow totaling $168 million.
