RBC Capital maintained a Sector Perform rating on Plexus (NASDAQ: PLXS), and cut the price target to $35.00 (from $41.00), following the company's 4Q15 earnings results. PLXS reported Sept-qtr rev/EPS of $669M/$0.70, which was slightly above expectations. PLXS guided Dec-qtr to $600–625M/$0.41–0.48, which was below consensus revenue and EPS estimates of $675M/$0.70.

Analyst Mitch Steves commented, "Despite solid Sept-qtr results, the Company guided Dec-qtr down -8.4% q/q (Street modeling flattish) and we note the following key dynamics: 1) the Company is pruning challenged Networking ($29M Q1FY16 impact) and Industrial programs ($13M Q1FY16 impact); 2) while revenue will improve in 2HFY16 on a sequential basis the Company will be down year-over-year and 3) the Company anticipates saving $6-8M from new cost initiatives to adjust for the lower revenue run-rate. Overall, results were below expectations and our estimates are adjusted downward causing us to lower our Price Target to $35 (from $41) and we reiterate our SP rating. Net Net: negative revenue growth adds a new question to the PLXS story."

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Shares of Plexus closed at $39.28 yesterday.