Analyst Jaeson Schmidt from Lake Street has revised the price target for Benchmark Electronics (BHE, Financial), reducing it to $46 from the previous $52. This decision follows the company's announcement of "mixed" financial results. Despite the less-than-expected revenue figures and a delayed growth forecast pushed to 2026 due to overall economic uncertainties, the firm maintains a Buy rating on BHE shares. Notably, Benchmark Electronics' capability to safeguard its earnings remains a positive aspect amid the challenges.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 4 analysts, the average target price for Benchmark Electronics Inc (BHE, Financial) is $47.00 with a high estimate of $52.00 and a low estimate of $41.00. The average target implies an upside of 36.15% from the current price of $34.52. More detailed estimate data can be found on the Benchmark Electronics Inc (BHE) Forecast page.
Based on the consensus recommendation from 4 brokerage firms, Benchmark Electronics Inc's (BHE, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Benchmark Electronics Inc (BHE, Financial) in one year is $27.83, suggesting a downside of 19.38% from the current price of $34.52. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Benchmark Electronics Inc (BHE) Summary page.
BHE Key Business Developments
Release Date: April 29, 2025
- Revenue: $632 million, down 4% sequentially and 6% year over year.
- Non-GAAP EPS: $0.52, within guidance range of $0.48 to $0.54.
- Non-GAAP Gross Margin: 10.1%, a 30-basis-point decrease quarter over quarter and a 10-basis-point increase year over year.
- Non-GAAP Operating Margin: 4.6%, down 50 basis points sequentially and 30 basis points year over year.
- Free Cash Flow: $27 million in Q1, totaling over $140 million on a trailing 12-month basis.
- Cash Balance: $355 million as of March 30, a year-over-year increase of $59 million.
- Debt: $121 million outstanding on term loan and $155 million on revolver, with $391 million available to borrow.
- Liquidity Ratio: 0.6, down from 0.9 in the prior year period.
- CapEx: $4 million in Q1, primarily for Malaysia and Thailand facilities.
- Dividends and Share Repurchase: $6.1 million in dividends paid and $8 million in shares repurchased.
- Cash Conversion Cycle: 86 days, improving 3 days sequentially and 8 days year over year.
- Semi-Cap Revenue: Up 18% year over year, despite a 2% quarter-over-quarter decrease.
- A&D Revenue: Up 15% year over year, with a 4% quarter-over-quarter increase.
- Medical Revenue: Down 12% quarter over quarter due to demand softness.
- AC&C Revenue: Decreased 12% quarter over quarter due to timing-related weaknesses.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Benchmark Electronics Inc (BHE, Financial) reported first-quarter revenue of $632 million, led by double-digit growth in the Semi-Cap and A&D sectors.
- The company achieved its sixth consecutive quarter of greater than 10% non-GAAP gross margin and eighth quarter of positive free cash flow.
- Non-GAAP earnings per share of $0.52 was above the midpoint of the guidance range, demonstrating strong profitability management.
- Benchmark Electronics Inc (BHE) generated $27 million in free cash flow in the quarter, totaling over $140 million on a trailing 12-month basis.
- The company is well-positioned to help customers optimize their supply chain with a significant US manufacturing footprint, representing over 55% of its total global manufacturing capacity.
Negative Points
- First-quarter revenue of $632 million was down 4% sequentially and 6% year over year.
- Non-GAAP operating margin decreased sequentially and year over year due to a lower revenue base.
- The medical sector experienced a 12% revenue decline versus the prior quarter, with continued demand softness.
- AC&C revenue decreased 12% quarter over quarter, driven by timing-related weaknesses in both HPC and communications businesses.
- The company faces challenges from global tariff uncertainties, impacting customer decisions and potentially elongating the cycle for new bookings.
