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What: Shares of Sanmina (NASDAQ:SANM) have popped today by as much as 16% after the company reported earnings.
So what: Revenue in the fiscal second quarter was $1.43 billion, and non-GAAP earnings per share came in at $0.30. That top-line result was in line with consensus estimates while the bottom-line was a beat relative to estimates. CEO Jure Sola said the company continues to face a "soft market environment" but that Sanmina continues to invest in technology and services, with new program ramps on the horizon.
Now what: The company provided outlook for the coming quarter ending June, with revenue expected in the range of $1.45 billion to $1.5 billion. Non-GAAP earnings per share should be $0.32 to $0.38. Following the results, Needham boosted its price target on the stock from $12 to $13 while keeping its buy rating, citing solid execution amid a tough environment. The analyst believes infrastructure leverage will pay off later in the year along with cost efficiencies.
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