Needham & Company Remains Bullish on Sanmina (SANM) Following 3Q Results
Needham & Company maintained a Buy rating and $25.00 price target on Sanmina-SCI Corp. (NASDAQ: SANM) following 3Q15 results. SANM reported revenues of $1.54B, compared to $1.52B consensus. EPS was reported at $0.53, compared to $0.49 consensus.
Analyst Sean Hannan commented, "SANM delivered a healthy F3Q beat and F4Q raise as its continually diversifying model pays dividends. In the course of the past 2-3 years, we believe SANM has made industry-leading progress in the growth of its non-traditional business (~50%+/-), namely its Industrial/Medical/Defense segment, and we maintain the view that this success is generating a healthy positive offset to the occasional blips within traditional tech markets (presently, Wireless). In the big picture, we expect modest growth at present but remain positive on SANM EPS growth as a function of more stable mix, margin momentum (mix + cost controls), and buyback support. Reiterate Buy"
Hannan also added, "Sept. guidance calls for $1.55-1.65B (up ~4%) & non-GAAP EPS of $0.52-0.58, putting both midpoints above prior cons. of $1.56B and $0.53. By segment, Communications and Ind/Med/Def to be up, with Computing & Storage to be flat (see following pages for additional detail). Note that results to be impacted by extra week in the quarter (which tends to negatively impact margin)."
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Shares of Sanmina-SCI Corp. closed at $19.03 yesterday.