Benchmark Electronics (BHE) Tops Q4 EPS by 4c; Issues Mixed Q1 Outlook

Benchmark Electronics (NYSE: BHE) reported Q4 EPS of $0.45, $0.04 better than the analyst estimate of $0.41. Revenue for the quarter came in at $626 million versus the consensus estimate of $624.63 million.

GUIDANCE:

Benchmark Electronics sees Q1 2016 EPS of $0.29-$0.33, versus the consensus of $0.34. Benchmark Electronics sees Q1 2016 revenue of $565-590 million, versus the consensus of $578.1 million.

"2015 marked a year of continued progress on Benchmark's key strategic initiatives. Through focused and consistent execution, we achieved 55% revenue contribution from customers in our Industrial, Medical and Test & Instrumentation sectors," said Gayla Delly, Benchmark's President and Chief Executive Officer. "Continued emphasis in these strategic markets, coupled with our focus on operational excellence, is a key driver of our ongoing margin expansion strategy. In the fourth quarter, we delivered a 50 basis point year-over-year and a 20 basis point quarter-over-quarter improvement in operating margin and achieved our target of exiting 2015 with a 4.5% non-GAAP operating margin."

"The acquisition of Secure Technology in the fourth quarter of 2015 was another key milestone, although it did not significantly impact our results for the quarter. As expected, the transaction is advancing our business transformation and penetration of targeted higher-value markets. Integration is well underway and progressing according to schedule. In the near term, we are focused on customer care and expanding current relationships. Looking forward, we expect to realize the strategic benefits of the acquisition beginning in 2016."

Ms. Delly concluded, "During the last 12 months, Benchmark returned $68 million to shareholders through share repurchases, and we plan to continue these repurchases against the $135 million that remains available under our Board authorizations. We will continue our balanced approach to capital allocation through investments in organic initiatives, external growth opportunities and share repurchases as we execute our long-term strategy to drive increasing value for our shareholders and enhanced service for our customers."

For earnings history and earnings-related data on Benchmark Electronics (BHE) click here.

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