=Sanmina (SANM) reported earnings on Mon 28 Oct 19 (a/h)

Sanmina beats by $0.04, misses on revs; guides Q1 EPS below consensus, revs below two analyst estimate; Announces $200 mln share repurchase, Company-wide Right-sizing plan 

Reports Q4 (Sep) earnings of $0.84 per share, excluding non-recurring items, $0.04 better than the S&P Capital IQ Consensus of $0.80; revenues rose 0.9% year/year to $1.89 bln vs the $1.98 bln S&P Capital IQ Consensus.

Co issues downside guidance for Q1, sees EPS of $0.65-0.75, excluding non-recurring items, vs. $0.87 S&P Capital IQ Consensus; sees Q1 revs of $1.725-1.825 bln vs. $2.09 bln two analyst estimate.

Expanded Share Repurchase Program

• The Board of Directors has authorized the repurchase of up to an additional $200 million of Sanmina's common stock. The new stock repurchase program has no expiration date. As of September 28, 2019, $100.8 million remained available under the current program approved in September 2017. This brings the outstanding Board authorized common stock repurchase amount to $300.8 million. 

Company-wide Right-sizing Plan

• On October 28, 2019, the Company adopted a company-wide right-sizing plan. Under this plan, the Company expects to incur restructuring charges of approximately $10 million to $20 million, consisting primarily of cash severance costs.

"We expect demand to be soft in the first half of the fiscal year as a result of excess inventory in the channel, slower than anticipated 5G deployment and global economic uncertainty. As a result, we have initiated a plan to right size the organization to further improve operational efficiencies and optimize our cost structure. This right-sizing, coupled with our focus on the quality of our revenue, will support our ongoing operating margin, non-GAAP earnings per share and cash generation objectives," stated Hartmut Liebel, Chief Executive Officer.