RBC Capital Reiterates Sector Perform on Sanmina (SANM) Following In-Line 3Q

RBC Capital reiterated a Sector Perform rating and $29.00 price target on Sanmina-SCI Corp. (NASDAQ: SANM) following the company's 3Q earnings report. SANM reported revenues of $1.67B and EPS of $0.63, which was roughly in-line with consensus expectations.

Analyst Mitch Steves commented, "While Sanmina reported an in-line Jun-qtr and guided Sept-qtr in-line as well, it appears that investors were anticipating upside to revenues into the conference call. Notably, while results for Communications continue to be positive (+4.1% q/q), we note that Embedded Computing lagged relative to expectations (down -3.1% vs. expectations of flattish trends). Given that revenue dynamics are largely in-line we also note that margins remain near 4% with the Company seeing 3.7% in Jun-qtr and guiding Sept-qtr to 3.9% at the mid-point. Net Net: while trends within communications appear to be solid (backed by modular optical ramps) the margin profile appears to be bracketed at 3.9% (+/- 20bps) causing limited upside to EPS results at this time. Given this dynamic we remain on the sidelines post the conference call."

For an analyst ratings summary and ratings history on Sanmina-SCI Corp. click here. For more ratings news on Sanmina-SCI Corp. click here.

Shares of Sanmina-SCI Corp. closed at $29.14 yesterday.

You May Also Be Interested In

• Gilead Sciences (GILD) Misses Q1 EPS by 288c
• Comcast Corp (CMCSA) PT Lowered to $48 at Pivotal Research
• META to capture largest share of users, SNAP to benefit from ad budget shifts - Canaccord Genuity weighs in on TikTok ban