Benchmark Electronics (NYSE:BHE) Announces Quarterly Earnings Results, Beats Estimates By $0.05 EPS

Key Points

• Benchmark Electronics beat expectations: Quarterly EPS was $0.84 versus the $0.79 consensus, while revenue reached $810.9 million compared with estimates of $776.7 million.
• Growth outlook improved: Revenue rose 19% year over year to a record $811 million, and management expects fourth-quarter revenue of $815 million to $855 million while projecting full-year 2026 revenue above $3 billion.
• Demand is broad but risks remain: Semiconductor, industrial, medical, and advanced computing businesses all grew, though memory and ASIC constraints persist and next-generation HPC opportunities may be delayed until mid-to-late 2027.

Benchmark Electronics (NYSE:BHE - Get Free Report) announced its quarterly earnings results on Wednesday. The technology company reported $0.84 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.79 by $0.05, FiscalAI reports. Benchmark Electronics had a return on equity of 7.28% and a net margin of 1.89%. The company had revenue of $810.90 million during the quarter, compared to the consensus estimate of $776.65 million.

Here are the key takeaways from Benchmark Electronics' conference call:

• Record Q3 performance: Revenue reached $811 million, up 19% year over year, while non-GAAP EPS rose 35% to $0.84; both exceeded the high end of prior guidance. Operating margin expanded 70 basis points to 5.5%.
• Raised outlook: Benchmark expects Q4 revenue of $815 million to $855 million and now projects full-year 2026 revenue to exceed $3 billion, representing approximately 16% annual growth.
• Broad-based demand is improving: Semi-Cap revenue grew 30%, Industrial 13%, Medical 9%, and AC&C 50% year over year, while strong bookings and new program ramps support continued growth in 2027.
• Supply-chain and timing risks remain: Management cited constraints primarily involving memory and ASIC supply and said it is making selective inventory investments to support customers. Next-generation HPC opportunities have shifted to a likely mid-to-late 2027 contribution, later than previously indicated.

Benchmark Electronics Price Performance

BHE stock traded up $2.58 during mid-day trading on Wednesday, reaching $73.28. 452,988 shares of the company's stock were exchanged, compared to its average volume of 398,103. The company has a market cap of $2.63 billion, a price-to-earnings ratio of 49.85, a price-to-earnings-growth ratio of 1.25 and a beta of 1.25. The stock's 50 day moving average is $75.75 and its 200 day moving average is $71.89. The company has a debt-to-equity ratio of 0.16, a current ratio of 1.99 and a quick ratio of 1.31. Benchmark Electronics has a 12-month low of $41.69 and a 12-month high of $100.41.

Benchmark Electronics Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, October 13th. Shareholders of record on Wednesday, September 30th were given a dividend of $0.17 per share. The ex-dividend date was Wednesday, September 30th. This represents a $0.68 dividend on an annualized basis and a yield of 0.9%. Benchmark Electronics's dividend payout ratio is currently 46.26%.

Analyst Ratings Changes

Several equities analysts have recently weighed in on the stock. Weiss Ratings lowered shares of Benchmark Electronics from a "buy (b-)" rating to a "hold (c+)" rating in a report on Friday. Needham & Company LLC began coverage on shares of Benchmark Electronics in a report on Friday, October 23rd. They set a "buy" rating and a $85.00 price target on the stock. Finally, Zacks Research upgraded shares of Benchmark Electronics to a "hold" rating in a research report on Monday, October 5th. Two research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat, Benchmark Electronics has an average rating of "Moderate Buy" and a consensus price target of $88.50.

About Benchmark Electronics

Benchmark Electronics, Inc is a provider of integrated electronics manufacturing and engineering services. The company helps original equipment manufacturers design, develop, test, manufacture and support complex electronic products and systems.

Its services include product design and engineering, prototyping, printed circuit board assembly, systems integration, precision machining, testing, supply chain management, and aftermarket support. Benchmark serves customers in industries such as aerospace and defense, medical technology, industrial equipment, semiconductor capital equipment, and advanced computing.

Headquartered in Tempe, Arizona, Benchmark operates manufacturing and engineering facilities across North America, Europe and Asia.

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