Benchmark Electronics (NYSE:BHE) Shares Gap Up on Earnings Beat

Benchmark Electronics, Inc. (NYSE:BHE) 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 changing hands.

The technology company reported $0.75 earnings per share for the quarter, beating analysts’ consensus estimates of $0.69 by $0.06. The firm had revenue of $755.98 million for the quarter, compared to analyst estimates of $720.00 million. Benchmark Electronics had a net margin of 1.27% and a return on equity of 6.63%. Benchmark Electronics’s quarterly revenue was up 17.7% on a year-over-year basis. During the same period last year, the firm posted $0.03 EPS. Benchmark Electronics has set its Q3 2026 guidance at 0.760-0.820 EPS.

Benchmark Electronics Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, July 10th. Stockholders of record on Tuesday, June 30th were issued a $0.17 dividend. The ex-dividend date of this dividend was Tuesday, June 30th. This represents a $0.68 annualized dividend and a dividend yield of 0.9%. Benchmark Electronics’s payout ratio is presently 71.58%.

Trending Headlines about Benchmark Electronics

Here are the key news stories impacting Benchmark Electronics this week:

• 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.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on the company. Lake Street Capital reaffirmed a “buy” rating and issued a $92.00 price objective on shares of Benchmark Electronics in a report on Thursday, April 30th. Weiss Ratings reissued a “hold (c)” rating on shares of Benchmark Electronics in a research note on Friday, July 17th. Finally, Needham & Company LLC raised their price target on Benchmark Electronics from $80.00 to $90.00 and gave the company a “buy” rating in a report on Thursday. Two equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $91.00.

Insider Buying and Selling at Benchmark Electronics

In other news, CEO David Moezidis sold 12,500 shares of the stock in a transaction dated Tuesday, May 26th. The shares were sold at an average price of $87.57, for a total value of $1,094,625.00. Following the completion of the transaction, the chief executive officer owned 85,564 shares in the company, valued at $7,492,839.48. This trade represents a 12.75% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director David W. Scheible sold 22,989 shares of the firm’s stock in a transaction dated Wednesday, May 13th. The shares were sold at an average price of $85.00, for a total transaction of $1,954,065.00. Following the completion of the sale, the director owned 62,057 shares of the company’s stock, valued at $5,274,845. This trade represents a 27.03% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 86,352 shares of company stock worth $7,312,806. Company insiders own 1.10% of the company’s stock.

Institutional Investors Weigh In On Benchmark Electronics

Institutional investors have recently modified their holdings of the company. ProShare Advisors LLC grew its holdings in shares of Benchmark Electronics by 3.2% in the 4th quarter. ProShare Advisors LLC now owns 6,952 shares of the technology company’s stock worth $297,000 after acquiring an additional 214 shares during the period. Pictet Asset Management Holding SA raised its holdings in Benchmark Electronics by 4.6% during the first quarter. Pictet Asset Management Holding SA now owns 5,097 shares of the technology company’s stock worth $286,000 after purchasing an additional 226 shares during the last quarter. Crossmark Global Holdings Inc. boosted its position in Benchmark Electronics by 3.3% during the fourth quarter. Crossmark Global Holdings Inc. now owns 7,158 shares of the technology company’s stock worth $306,000 after purchasing an additional 228 shares in the last quarter. Rockefeller Capital Management L.P. boosted its position in Benchmark Electronics by 69.6% during the fourth quarter. Rockefeller Capital Management L.P. now owns 609 shares of the technology company’s stock worth $26,000 after purchasing an additional 250 shares in the last quarter. Finally, Parkside Financial Bank & Trust grew its holdings in Benchmark Electronics by 28.6% in the fourth quarter. Parkside Financial Bank & Trust now owns 1,446 shares of the technology company’s stock valued at $62,000 after purchasing an additional 322 shares during the last quarter. Hedge funds and other institutional investors own 92.29% of the company’s stock.

Benchmark Electronics Price Performance

The company has a market cap of $2.74 billion, a price-to-earnings ratio of 80.26 and a beta of 1.24. The company has a fifty day simple moving average of $86.25 and a two-hundred day simple moving average of $69.79. The company has a quick ratio of 1.42, a current ratio of 2.18 and a debt-to-equity ratio of 0.18.

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.