The following is a summary of the Benchmark Electronics Inc. (BHE) Q3 2024 Earnings Call Transcript:
Financial Performance:
Benchmark Electronics reported Q3 2024 revenue of $658 million, above the midpoint of the guidance range.
Non-GAAP gross margin for the quarter was 10.2%, marking the fourth consecutive quarter of achieving 10% or better.
Non-GAAP operating margin reached 5.3%, representing the 16th consecutive quarter of year-over-year expansion.Delivered $0.57 in non-GAAP EPS, aligning with the higher end of the guidance range.
Business Progress:
Benchmark continues to focus on high value sectors despite near-term macroeconomic headwinds, indicating a multiyear growth cycle in the EMS industry.
Notable revenue growth and share gains were observed in the semicap sector, with revenue up 13% year-over-year.
Significant new business wins and ongoing capacity expansion including a new facility in Penang to support growth in semicap and aerospace sectors.
Free cash flow generated in the quarter amounted to $29 million, with a trailing 12 month total of $245 million.
Opportunities:
Benchmark anticipates revenue growth driven by the semiconductor sector and aerospace applications, benefiting from recent wins and an expanding capacity.
Positive outlook for operational and shareholder value enhancement through disciplined capital management and strategic reinvestment.
Risks:
Continued weakness in the industrial, medical, and communications sectors could weigh on overall growth despite sector-based successes.
Potential prolonged weakness in medical devices and inventory rebalancing impacting sector performance.
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.
