It's been a good week for Benchmark Electronics, Inc. (NYSE:BHE) shareholders, because the company has just released its latest full-year results, and the shares gained 8.6% to US$27.51. It was a credible result overall, with revenues of US$2.1b and statutory earnings per share of US$0.38 both in line with analyst estimates, showing that Benchmark Electronics is executing in line with expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Taking into account the latest results, the most recent consensus for Benchmark Electronics from three analysts is for revenues of US$2.14b in 2021 which, if met, would be a satisfactory 4.1% increase on its sales over the past 12 months. Per-share earnings are expected to leap 111% to US$0.81. In the lead-up to this report, the analysts had been modelling revenues of US$2.14b and earnings per share (EPS) of US$0.81 in 2021. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 11% to US$31.00. It looks as though they previously had some doubts over whether the business would live up to their expectations.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Benchmark Electronics' past performance and to peers in the same industry. One thing stands out from these estimates, which is that Benchmark Electronics is forecast to grow faster in the future than it has in the past, with revenues expected to grow 4.1%. If achieved, this would be a much better result than the 2.4% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 7.6% per year. Although Benchmark Electronics' revenues are expected to improve, it seems that the analysts are still bearish on the business, forecasting it to grow slower than the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply revenues will perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
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 2022, and you can see them free on our platform here.
You still need to take note of risks, for example - Benchmark Electronics has 4 warning signs we think you should be aware of.
This article by Simply Wall St is general in nature. 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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