Solectron Rises Despite Outlook, Price Target Cut

By TSC Staff ,

Solectron (SLR) was up 6.9% in early trading after the electronics contract manufacturer posted a third-quarter operating earnings late Monday of 12 cents a share, a penny lower than the consensus estimate but roughly in line with expectations.

The company also cut 12,600 more jobs, bringing the total to 20,700, or 26% of its workforce. Solectron expects earnings in the current quarter between 5 and 9 cents a share, vs. the Street estimate of 16 cents, on revenue of $3 billion to $3.5 billion.

This morning,

Credit Suisse First Boston

cut its 2001 EPS estimate for Solectron to 78 cents from 83 cents, and lowered its price target on the stock to between $18 and $19 from $30.

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