Electronics manufacturing services provider Benchmark (NYSE: BHE) will be reporting earnings this Wednesday afternoon. Here’s what to look for.
Benchmark beat analysts’ revenue expectations last quarter, reporting revenues of $704.3 million, up 7.2% year on year. It was a very strong quarter for the company, with revenue guidance for next quarter beating analysts’ expectations and a beat of analysts’ EPS estimates.
Is Benchmark a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Benchmark’s revenue to grow 7.1% year on year, a reversal from the 6.5% decrease it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Benchmark has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Benchmark’s peers in the tech hardware & electronics segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Jabil delivered year-on-year revenue growth of 23.1%, beating analysts’ expectations by 6.8%, and Knowles reported revenues up 15.8%, topping estimates by 3.9%. Jabil traded up 1.1% following the results while Knowles was down 2.1%.
Read our full analysis of Jabil’s results here and Knowles’s results here.
There has been positive sentiment among investors in the tech hardware & electronics segment, with share prices up 13.1% on average over the last month. Benchmark is up 29.5% during the same time and is heading into earnings with an average analyst price target of $60 (compared to the current share price of $69.30).
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