Benchmark Electronics Earnings: Here’s Why the Stock is Up Now

Benchmark Electronics Inc. (NYSE:BHE) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 2.4%.

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Benchmark Electronics Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 12% to $0.22 in the quarter versus EPS of $0.25 in the year-earlier quarter.

Revenue: Decreased 8.59% to $542.44 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Benchmark Electronics Inc. reported adjusted EPS income of $0.22 per share. By that measure, the company beat the mean analyst estimate of $0.20. It missed the average revenue estimate of $546.98 million.

Quoting Management: “First quarter revenues and earnings were in line with our expectations,” said Gayla J. Delly, the Company’s Chief Executive Officer. “These results were driven by our teams’ continued ability to execute effectively in the current uncertain global economic environment. Against these headwinds, contributions from new program ramps, operational excellence and strength in new program wins provide good momentum for future growth. As we look ahead, we expect second quarter revenues in the range of $560 million to $590 million and diluted earnings per share (excluding restructuring and Thailand flood related items) between $0.25 and $0.30.”

Key Stats (on next page)…

Revenue decreased 14.43% from $633.93 million in the previous quarter. EPS decreased 33.33% from $0.33 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.30 to a profit $0.28. For the current year, the average estimate has moved down from a profit of $1.26 to a profit of $1.11 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)