Needham & Company reiterated a Buy rating on Benchmark (NYSE: BHE), and cut the price target to $24.00 (from $27.00), following the company's 3Q15 earnings results. BHE reported 3Q results with rev of $630M and EPS of $0.41 vs. guidance for $635-665M/$0.38-0.42. Prior consensus was $653M/$0.41. BHE expects $620-640M in rev (midpoint flat q/q) and non-GAAP EPS of $0.39-0.42 (incl. opt.), vs. cons. of $710M & $0.47.

Analyst Sean Hannan commented, "BHE's mixed 3Q results and soft 4Q guidance came as a surprise as some non-traditional segments (Industrial and Test) and traditional segments (telco, storage and servers) all weakened incrementally in the back half of the quarter. Overall, we agree with BHE's approach as it continues to focus on improving its mix, margins and earnings capability within the context of a long-term strategy and model. Further, although softness has clearly materialized near-term, we expect improved mix and new programs (won/in-hand) to lend aid to earnings growth within a few quarters. Consequently, we reiterate our Buy albeit at a lower $24 target (from $27) on our reduced forecast."

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Shares of Benchmark closed at $20.56 yesterday.