Yahoo Finance Benchmark Electronics Inc (BHE) Q1 2024 Earnings: Misses EPS Estimates, Surpasses Revenue Forecasts
Revenue: $676 million, exceeding the estimated $645 million.
Net Income: Reported at $14 million, below the estimated $17.04 million.
Earnings Per Share (GAAP): $0.38, falling short of the estimated $0.46.
Free Cash Flow: Positive at $43 million, indicating strong cash generation ability.
Gross Margin: Held steady at 10.0%, reflecting consistent profitability.
Operating Margin: GAAP operating margin reported at 3.8%, with a non-GAAP margin of 4.9%.
Future Outlook: Q2 revenue projected between $615 million and $655 million, with GAAP EPS between $0.32 and $0.38.
Benchmark Electronics Inc (NYSE:BHE) disclosed its first quarter results for 2024 on May 1, 2024, revealing mixed outcomes in comparison to analyst expectations. The company reported a revenue of $676 million, surpassing the estimated $645 million, yet fell short on earnings per share (EPS) with a reported GAAP EPS of $0.38 against an anticipated $0.46. The detailed financial performance can be explored in Benchmark's 8-K filing.
About Benchmark Electronics Inc
Benchmark Electronics Inc operates in the sector of product design, engineering services, technology solutions, and advanced manufacturing services. The company caters to diverse industries such as aerospace & defense, medical technologies, and telecommunications, primarily deriving significant revenue from the Americas.
Q1 2024 Performance Highlights
The first quarter saw Benchmark generate $48 million in net cash from operations and $43 million in free cash flow. Despite the revenue beat, both GAAP and non-GAAP gross margins stood at 10.0%, with operating margins at 3.8% and 4.9% respectively. The company's net income for the quarter was $14 million, a slight increase from the previous year's $12 million.
Operational and Sector Challenges
Benchmark's performance this quarter reflects a strategic focus on operational efficiency and targeted investments for future growth. However, the company faced challenges in sectors like Medical, Advanced Computing, and Next-Generation Communications, which saw decreased sales. Conversely, there were positive developments in the Complex Industrials and A&D sectors, which may mitigate some of the downturns in other areas.
Financial Position and Cash Flow Analysis
The company's balance sheet remains robust with $296 million in cash and cash equivalents. Benchmark's cash conversion cycle improved to 94 days from 109 days year-over-year, indicating enhanced efficiency in managing receivables and inventories. This financial agility is crucial for sustaining operations and funding future expansions.
Forward Guidance and Strategic Moves
For Q2 2024, Benchmark anticipates revenues between $615 million and $655 million, with GAAP EPS expected to range from $0.32 to $0.38. The company's guidance also includes projected restructuring charges and other adjustments, highlighting ongoing efforts to streamline operations and improve profitability.
Investor and Analyst Perspectives
"We are pleased with our strong performance in the first quarter, which reflects our focus on driving operational efficiency while continuing our strategic investments in support of our future growth," said Jeff Benck, Benchmarks President and CEO. "We again delivered year-over-year improvement in both GAAP and non-GAAP gross and operating margins which, coupled with our reductions in inventory, resulted in our fourth consecutive quarter of positive cash flow from operations and free cash flow."
This quarter's results demonstrate Benchmark's resilience and strategic adaptability in a fluctuating market. While the EPS did not meet expectations, the revenue growth and positive cash flow dynamics provide a solid foundation for future growth and investor confidence.
For more detailed information and future updates, investors and stakeholders are encouraged to follow Benchmark's filings and announcements.
Explore the complete 8-K earnings release (here) from Benchmark Electronics Inc for further details.
This article first appeared on GuruFocus.
