Goldman Sachs Introduces Sanmina-SCI Corporation FY2013 Estimate; Trims FY11/12

Sanmina-SCI Corporation SANM delivered slight revenue upside in the September quarter, although it guided revenue to be down around 2.5% qoq in the December quarter, or $60 mn below expectations, Goldman Sachs reports. “Management attributed the soft outlook to an inventory adjustment at customers following very strong growth in recent quarters,” Goldman Sachs writes. “While disappointing, we think the bigger issue for Sanmina is the miss to September quarter gross margin, which declined 10 bp qoq to 7.84% and came in 20 bp below our estimate as a result of subpar profitability in its component business (around 20% of sales).” Goldman Sachs is trimming its estimate slightly due to lower sales and gross margin, slightly offset by a lower than expected tax rate (which Goldman Sachs said contributes $0.07 to its FY11 estimate). “Our new FY11/12 (September year end) EPS estimates (ex ESOs) are $1.84 and $2.23, down from $1.86 and $2.29,” Goldman Sachs adds. “We are introducing a FY2013 estimate of $2.54.” Sanmina-SCI Corporation currently trades at $12.98.