Fri, Mar. 13, 9:39 AM
- Goldman has upgraded Flextronics (FLEX +1.3%) to Neutral and fellow contract manufacturer Sanmina (SANM +2.9%) to Buy. Its targets have respectively been hiked to $12 and $26.
- Regarding Flextronics, Goldman argues demand from telecom infrastructure clients (pressured lately by weak carrier capex) is bottoming. Consumer hardware sales were a strong point for the company in calendar Q4.
Tue, Jan. 27, 12:40 PM
Mon, Jan. 26, 5:36 PM
Mon, Jan. 26, 4:55 PM| Comment!
Mon, Jan. 26, 4:07 PM
Sun, Jan. 25, 5:35 PM
Fri, Jan. 16, 5:38 PM
Oct. 28, 2014, 12:46 PM
Oct. 27, 2014, 5:14 PM
- Sanmina (NASDAQ:SANM) expects FQ1 revenue of $1.65B-$1.7B and EPS of $0.55-$0.60, above a consensus of $1.58B and $0.49.
- Gross margin rose 10 bps Y/Y in FQ4 to 7.8%. GAAP opex -1% to $70.1M.
- Rival Flextronics (NASDAQ:FLEX) is getting an AH lift from Sanmina's numbers. Its FQ2 report arrives on Wednesday.
- FQ4 results, PR
Oct. 27, 2014, 4:14 PM
Oct. 26, 2014, 5:35 PM
Oct. 20, 2014, 1:31 PM
- With shares down 23% since Sep. 1 (vs. a 6% drop for the S&P), Goldman's Mark Delaney has upgraded Sanmina (SANM +3.7%) to Neutral, while keeping his $18 target intact.
- Though still seeing risk to calendar Q4 estimates, Delaney thinks the contract manufacturer now has a fair relative valuation, given shares trade at a 16% discount to peers on a forward P/E (2015E EPS) basis.
Oct. 10, 2014, 1:42 PM
- Following Microchip's warning and related prediction of a chip industry correction, Goldman's James Covello thinks there's 15%-20% downside in industry names.
- Covello, who lowered his industry view to Cautious in August: "The last time Microchip negatively preannounced was October 15, 2012 (3% sales miss). Between October 1 and December 31, Street 2013 sales estimates for the Semi group were revised down 6% on average."
- He adds several datapoints suggest the industry has been overheating. Among them: Semi revenue growth has outpaced end-market growth, and supply chain inventory dollars rose 3% more than their 3-year average in Q2.
- "Nobody will be spared," predicts Hedgeye's Craig Berger. Benchmark's Gary Mobley observes 5 of the 6 chip stocks to have made Q3 pre-announcements have thus done so to the downside.
- Worth noting: Mobile chipmaker Silicon Motion (SIMO -8.9%) is the one chipmaker to have positively pre-announced. It might not be a coincidence that Microchip has relatively low mobile exposure.
- Observing U.S. macro data remains positive even as China and Europe soften, Longbow's JoAnne Feeney remains bullish long-term on select names. However, she has cut her short-term rating on Linear (LLTC -3.8%) to Sell, and removed IDT (IDTI -7.1%) from her trading long list.
- In addition to the names previously mentioned, the following chip stocks are seeing steep losses: AMD -5.1%. FCS -13.6%. NXPI -11.2%. CODE -11%. LSCC -9.6%. SIMG -8.1%. IPHI -7.7%. ISIL -9.5%. CY -6.9%. RMBS -7.1%. QUIK -5.7%. SQNS -5.1%. IMOS -6.5%.
- Foundries and contract manufacturers are also selling off: TSM -3.9%. UMC -2%. SMI -2.4%. SANM -11.7%. FLEX -6.8%. JBL -4%.
- Chip ETFs: SOXX, SMH, XSD, PSI, SOXL, USD, SOXS, SSG
Jul. 21, 2014, 5:45 PM
- Sanmina (NASDAQ:SANM) expects FQ4 revenue of $1.6B-$1.65B and EPS of $0.50-$0.55, largely above a consensus of $1.58B and $0.51.
- CEO Jure Sola: "Each of our end-market segments grew on a sequential basis, with notable performance from our industrial, medical and defense segment."
- Gross margin +20 bps Y/Y to 7.9%. SG&A spend +1% to $63M, R&D +16% to $7.8M. $6M was spent on buybacks.
- FQ3 results, PR
Jul. 21, 2014, 5:38 PM
Jul. 21, 2014, 4:06 PM
SANM vs. ETF Alternatives
Sanmina Corp manufactures solutions, components, products and repair, logistics and after-market services. It provides these comprehensive offerings to original equipment manufacturers, or OEMs in communications networks, computing & storage.
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