The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Benchmark Electronics beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank, and GAAP earnings per share contracted significantly.
Margins contracted across the board.
Benchmark Electronics reported revenue of $559.1 million. The four analysts polled by S&P Capital IQ looked for a top line of $515.4 million. Sales were 11% lower than the prior-year quarter's $626.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.17. The four earnings estimates compiled by S&P Capital IQ anticipated $0.10 per share on the same basis. GAAP EPS of $0.05 for Q4 were 84% lower than the prior-year quarter's $0.31 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 5.2%, 260 basis points worse than the prior-year quarter. Operating margin was 0.6%, 350 basis points worse than the prior-year quarter. Net margin was 0.5%, 250 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $535.8 million. On the bottom line, the average EPS estimate is $0.17.
Next year's average estimate for revenue is $2.31 billion. The average EPS estimate is $1.03.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 156 members rating the stock outperform and 10 members rating it underperform. Among 62 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 60 give Benchmark Electronics a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Benchmark Electronics is hold, with an average price target of $14.90.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.