Collins Stewart Comments on Sanmina-SCI at the Quarter

Collins Stewart has published a report on Sanmina-SCI Corp

. In the report, Collins Stewart wrote, "Good 3Q; Maintain Neutral & $12 PT; Looking for Consistency. Sanmina reported a nice qtr after a much lower than expected March F2Qwhich led to lowered numbers for FY11 (Sept). For F3Q (Jun) rev of$1.67B was above the mid-pt of $1.6B-$1.7B guidance. EPS of $0.42 was $0.07 above consensus (ex-charges). Gross (8%) & Op margins (3.9%)were also at or above high end of expectations. Business across the board was strong, however, mgmt moved off its expectation of reaching 5% OM in the Dec qtr. Optical systems/components & defense were weak. Most EMS providers weathered the weak March qtr, & are doing better than prior expectations despite softer macro trends. However, for Sanmina, we maintain our Neutral rating & $12 PT (6.5x FY12 EPS of $1.87) as we look for more consistency in results." Collins Stewart rated Sanmina-SCI a Neutral with a price target of $12.00. Sanmina-SCI Corp closed Monday at $10.20.