Research Desk Line-up: Plexus Post Earnings Coverage
LONDON, UK / ACCESSWIRE / July 25, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Benchmark Electronics, Inc. (NYSE: BHE), which can be viewed by registering at http://protraderdaily.com/optin/'symbol=BHE, following the Company's release of its second quarter fiscal 2017 earnings results on July 19, 2017. The electronic manufacturing services Company topped revenue and earnings expectations. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
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Get more of our free earnings reports coverage from other constituents of the Printed Circuit Boards industry. Pro-TD has currently selected Plexus Corp. (NASDAQ: PLXS) for due-diligence and potential coverage as the Company announced on July 19, 2017, its financial results for Q3 FY17 which ended on July 01, 2017, and also provided guidance for its fiscal fourth quarter ending September 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on Plexus when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on BHE; also brushing on PLXS. With the links below you can directly download the report of your stock of interest-free of charge at:
http://protraderdaily.com/optin/'symbol=BHE
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Earnings Reviewed
For the second quarter ended June 30, 2017, Benchmark Electronics reported revenue of $617 million, up 6.6% compared to revenue of $579 million. This was its second consecutive quarter of year-on-year growth. The Company's revenue numbers came in ahead of analysts' estimates of $25.75 million.
For Q2 2017, Benchmark Electronics' gross margins came in at 9.4%, reflecting a 30 basis point improvement on a y-o-y basis. The Company's non-GAAP operating margin was 4.1%, which increased 30 basis points on a q-o-q basis, driven by higher revenues.
Benchmark Electronics reported net income of $17 million, or $0.34 per diluted share, for Q2 2017 compared to net income of $17 million, or $0.26 per diluted share, for Q2 2016. On a non-GAAP basis, the Company posted earnings of $0.38 per share, up 8.6% on a y-o-y basis and ahead of Wall Street's expectations of $0.34 per share.
Segment Results
During Q2 2017, Benchmark Electronics' higher-value markets revenue, which represented 65% of the Company's total revenue, came in at $399 million compared to $385 million in Q1 2017. Within the higher-value markets, Industrial revenues for the reported quarter grew 5% on a q-o-q basis to $124 million due to increased demand from its customers. The segment's Aerospace and Defense (A&D) unit's revenues fell 4% on a q-o-q basis to $100 million which was attributed to demand mix and qualification issues, while it advanced 16% on a y-o-y basis driven by increased defense demand.
For Q2 2017, higher-value market's Medical revenues totaled $86 million, approximately flat on a q-o-q basis, while it came in 6% lower compared to the year ago same period due to declining demand across several of its top customers. The segment's Test & Instrumentation section's revenues grew 16% on a q-o-q basis to $89 million, while it surged 47% y-o-y from strong demand in its precision machining business, serving the semi-cap market.
During Q2 2017, Benchmark Electronics' Traditional markets revenue, which comprises 35% of Company's overall revenue, totaled $218 million up 11% on a y-o-y basis and 20% on a q-o-q basis. The division's computing sub segment revenue totaled $142 million, up 29% on a y-o-y basis, driven by growth from its existing storage and new security customers. The Telecommunication department revenue dropped 12% on a y-o-y basis to $76 million, primarily due to declines in demand for optical and broadcast products.
Cash Matters
During Q2 2017, Benchmark Electronics generated $15 million in cash from operations, while the Company utilized $4 million of free cash flows in the reported quarter. Benchmark Electronics' cash balance was $749 million at the end of the quarter, with $92 million available in the U.S.
The Company's inventory at the end of Q2 2017 was $416 million, an increase of $12 million from the previous quarter. Benchmark Electronics' accounts receivable was $392 million, reflecting an increase of $11 million from March 31, 2017, while its accounts payables were flat on q-o-q basis.
Benchmark Electronics stated that it improved its cycle day targets by 2 days on q-o-q basis, ending the quarter at 65 days. This was an 18-day overall improvement compared to Q2 2016. The Company's ROIC was 9.5%, representing a 50 basis point q-o-q improvement. In Q2 2017, Benchmark Electronics posted $142 million of bookings, which is slightly below the Company's H2 2017. The Company noted that almost 99% of all its bookings were in the higher value segments.
Outlook
For Q3 2017, Benchmark Electronics is forecasting revenues in the range of $575 million to $595 million, non-GAAP diluted earnings per share are expected to range from $0.32 to $0.36. For the upcoming quarter, the Company expects Industrial revenues to be up low single digits based on modest strength from its robotics and automation customers. A&D is expected to be up mid-single digits based on increased demand across multiple platforms and programs primarily in communication and munitions. Benchmark Electronic expects Medical revenues to be up approximately 10%, with the increase in demand across a number of existing and recently launched programs. For Test & Instrumentation, the Company anticipated demand to be somewhat moderate in Q3 2017.
Stock Performance
Benchmark Electronics' share price finished yesterday's trading session at $33.80, marginally up 0.90%. A total volume of 415.40 thousand shares have exchanged hands, which was higher than the 3-month average volume of 300.16 thousand shares. The Company's stock price soared 6.79% in the last three months, 12.85% in the past six months, and 45.56% in the previous twelve months. Additionally, the stock surged 10.82% since the start of the year. Shares of the Company have a PE ratio of 25.06 and currently have a market cap of $1.67 billion.
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