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Benchmark Electronics Earnings: What To Look For From BHE

BHE Cover Image

Global electronics solutions provider Benchmark Electronics (NYSE: BHE) will be reporting results tomorrow afternoon. Here’s what to look for.

Benchmark Electronics beat analysts’ revenue expectations by 1.2% last quarter, reporting revenues of $657.7 million, down 8.6% year on year. It was a satisfactory quarter for the company, with EPS guidance for next quarter topping analysts’ expectations.

Is Benchmark Electronics a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Benchmark Electronics’s revenue to decline 4.5% year on year to $660 million, improving from the 7.9% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.56 per share.

Benchmark Electronics Total Revenue

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Benchmark Electronics has missed Wall Street’s revenue estimates twice over the last two years.

Looking at Benchmark Electronics’s peers in the electrical systems segment, some have already reported their Q4 results, giving us a hint as to what we can expect. LSI delivered year-on-year revenue growth of 35.5%, beating analysts’ expectations by 14.3%, and OSI Systems reported revenues up 12.5%, topping estimates by 3.2%. LSI traded up 11.7% following the results while OSI Systems was also up 18.4%.

Read our full analysis of LSI’s results here and OSI Systems’s results here.

There has been positive sentiment among investors in the electrical systems segment, with share prices up 4.2% on average over the last month. Benchmark Electronics is down 1.9% during the same time and is heading into earnings with an average analyst price target of $45.67 (compared to the current share price of $44.79).

When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.

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