As you might know, Benchmark Electronics, Inc. (NYSE:BHE) just kicked off its latest second-quarter results with some very strong numbers. The company beat forecasts, with revenue of US$666m, some 4.9% above estimates, and statutory earnings per share (EPS) coming in at US$0.43, 28% ahead of expectations. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the current consensus, from the three analysts covering Benchmark Electronics, is for revenues of US$2.64b in 2024. This implies a perceptible 4.0% reduction in Benchmark Electronics' revenue over the past 12 months. Statutory earnings per share are expected to decline 14% to US$1.62 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$2.62b and earnings per share (EPS) of US$1.51 in 2024. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 10% to US$39.67. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Benchmark Electronics, with the most bullish analyst valuing it at US$46.00 and the most bearish at US$33.00 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 7.9% by the end of 2024. This indicates a significant reduction from annual growth of 6.8% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 7.2% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Benchmark Electronics is expected to lag the wider industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Benchmark Electronics' earnings potential next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Benchmark Electronics going out to 2025, and you can see them free on our platform here.
However, before you get too enthused, we've discovered 1 warning sign for Benchmark Electronics that you should be aware of.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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