Investing.com -- Shares in Sanmina Corporation (NASDAQ:SANM) surged more than 11% in after-hours trading after the San Jose-based electronics manufacturing services provider posted better than expected earnings on Monday afternoon.
Sanmina, a global equipment manufacturer that serves technology-related indutries such as the communication and computer hardware sectors, earned revenue of $1.54 billion or 0.53 per share during its third quarter which ended in late-June. Analysts expected revenues of $1.52 billion on earnings of 0.49 per share.
The company also recorded cash flow from operations of $112.7 million allowing it to execute a share repurchase plan of 2.3 million common shares for $47.7 million.
"We delivered solid results for the third quarter despite a mixed market environment. Consistent execution coupled with ongoing diversification were key drivers for overall improvement in our financial results," Sanmina CEO Jure Sola said in a statement. "We generated excellent cash flow from operations for the quarter which allowed us to accelerate our strategic initiatives and execute our share repurchase program creating value for our customers and shareholders."
Sanmina's GAAP operating profit declined slightly, as GAAP operating margin fell to $47.3 million or 3.1% of revenue, down from $53.3 million or 3.3% of revenue during the same period in June, 2014. In terms of forward guidance, Sanmina projects revenues of $1.55 to $1.65 billion for its fourth quarter, slightly ahead of analysts' expectations of $1.56 billion on 0.53 per share. Sanmina estimates it will produce per share earnings of 0.52 to 0.58 for the period.
"Our outlook for the fiscal fourth quarter reflects stabilization in the market. We remain confident the second half of the calendar year will continue to improve," Sola added.
Shares in Sanmina soared 2.17 or 11.40% to 21.20 in after-hours trading.