Benchmark Electronics, Inc. (NYSE:BHE – Get Free Report)’s stock price gapped up before the market opened on Thursday following a stronger than expected earnings report. The stock had previously closed at $74.11, but opened at $85.67. Benchmark Electronics shares last traded at $78.3050, with a volume of 32,898 shares trading hands.
The technology company reported $0.75 EPS for the quarter, beating analysts’ consensus estimates of $0.69 by $0.06. Benchmark Electronics had a net margin of 1.27% and a return on equity of 6.63%. The firm had revenue of $755.98 million for the quarter, compared to analysts’ expectations of $720.00 million. During the same period in the prior year, the company earned $0.03 EPS. The firm’s revenue was up 17.7% on a year-over-year basis. Benchmark Electronics has set its Q3 2026 guidance at 0.760-0.820 EPS.
Benchmark Electronics Dividend Announcement
The firm also recently declared a quarterly dividend, which was paid on Friday, July 10th. Stockholders of record on Tuesday, June 30th were given a $0.17 dividend. The ex-dividend date was Tuesday, June 30th. This represents a $0.68 annualized dividend and a dividend yield of 0.9%. Benchmark Electronics’s dividend payout ratio is currently 71.58%.
Key Stories Impacting Benchmark Electronics
- Positive Sentiment: Q2 earnings and revenue exceeded expectations. Benchmark reported $756 million in revenue, up 18% year over year, versus the $720 million consensus estimate. Non-GAAP EPS was $0.75, beating expectations of $0.69 and rising 36% from the prior year; GAAP EPS was $0.55. Benchmark Reports Strong Second Quarter Results
- Positive Sentiment: Third-quarter guidance was above analyst forecasts. Management expects EPS of $0.76 to $0.82, compared with the $0.72 consensus estimate, and revenue of $755 million to $795 million, above the $744.3 million estimate. Benchmark Electronics Earnings Report
- Positive Sentiment: Needham raised its price target. Needham & Company increased its target for BHE from $80 to $90 and maintained a “buy” rating, implying meaningful upside from the referenced $74.17 level. Benzinga analyst action
- Neutral Sentiment: Benchmark generated $35 million of operating cash flow and $22 million of free cash flow in the quarter, providing evidence of cash generation but leaving profitability relatively modest, with a reported net margin of 1.27%.
- Negative Sentiment: The stock’s valuation remains a risk after the rally: its price-to-earnings ratio is approximately 78, and shares remain below the 50-day moving average of $86.25. Investors may therefore expect continued execution to justify the premium valuation.
Analysts Set New Price Targets
Several research analysts recently issued reports on BHE shares. Lake Street Capital restated a “buy” rating and set a $92.00 price objective on shares of Benchmark Electronics in a research report on Thursday, April 30th. Needham & Company LLC raised their price target on Benchmark Electronics from $80.00 to $90.00 and gave the stock a “buy” rating in a research report on Thursday. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of Benchmark Electronics in a report on Friday, July 17th. Two equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat.com, Benchmark Electronics presently has a consensus rating of “Moderate Buy” and a consensus price target of $91.00.
View Our Latest Stock Analysis on BHE
Insider Buying and Selling at Benchmark Electronics
In other news, Director Kenneth T. Lamneck sold 24,263 shares of Benchmark Electronics stock in a transaction dated Tuesday, May 12th. The shares were sold at an average price of $81.49, for a total transaction of $1,977,191.87. Following the completion of the sale, the director directly owned 47,418 shares in the company, valued at $3,864,092.82. The trade was a 33.85% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, SVP Stephen J. Beaver sold 20,000 shares of the business’s stock in a transaction that occurred on Thursday, June 11th. The shares were sold at an average price of $86.25, for a total transaction of $1,725,000.00. Following the completion of the transaction, the senior vice president directly owned 75,020 shares of the company’s stock, valued at approximately $6,470,475. This represents a 21.05% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 86,352 shares of company stock valued at $7,312,806. Corporate insiders own 1.10% of the company’s stock.
Institutional Inflows and Outflows
Several institutional investors have recently bought and sold shares of the business. Royal Bank of Canada grew its position in shares of Benchmark Electronics by 30.2% in the first quarter. Royal Bank of Canada now owns 14,420 shares of the technology company’s stock valued at $548,000 after purchasing an additional 3,341 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in Benchmark Electronics by 4.6% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 21,239 shares of the technology company’s stock worth $808,000 after buying an additional 931 shares during the period. Caxton Associates LLP acquired a new stake in Benchmark Electronics in the 1st quarter worth about $202,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in Benchmark Electronics by 12.2% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 104,673 shares of the technology company’s stock valued at $3,981,000 after buying an additional 11,369 shares during the period. Finally, Jane Street Group LLC grew its holdings in Benchmark Electronics by 99.8% in the 1st quarter. Jane Street Group LLC now owns 107,802 shares of the technology company’s stock valued at $4,100,000 after buying an additional 53,840 shares during the period. 92.29% of the stock is currently owned by institutional investors and hedge funds.
Benchmark Electronics Stock Performance
The stock’s 50 day moving average price is $86.25 and its 200 day moving average price is $69.79. The company has a current ratio of 2.18, a quick ratio of 1.42 and a debt-to-equity ratio of 0.18. The company has a market cap of $2.74 billion, a price-to-earnings ratio of 80.26 and a beta of 1.24.
Benchmark Electronics Company Profile
Benchmark Electronics, Inc is a global provider of comprehensive electronics manufacturing services (EMS) and integrated engineering solutions. The company offers a full suite of services that span the entire product lifecycle, from early‐stage design and prototyping to high‐volume production and aftermarket support. Benchmark serves diverse end markets, including industrial automation, medical devices, communications, aerospace and defense, and semiconductor equipment.
At the core of Benchmark’s offering are printed circuit board assemblies (PCBA), system integration, box build assemblies and turnkey manufacturing.
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