Firing on All Cylinders: Benchmark (NYSE:BHE) Q4 Earnings Lead the Way
Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Benchmark (NYSE:BHE) and the best and worst performers in the electronic components & manufacturing industry.
The sector could see higher demand as the prevalence of advanced electronics increases in industries such as automotive, healthcare, aerospace, and computing. The high-performance components and contract manufacturing expertise required for autonomous vehicles and cloud computing datacenters, for instance, will benefit companies in the space. However, headwinds include geopolitical risks, particularly U.S.-China trade tensions that could disrupt component sourcing and production as the Trump administration takes an increasingly antagonizing stance on foreign relations. Additionally, stringent environmental regulations on e-waste and emissions could force the industry to pivot in potentially costly ways.
The 9 electronic components & manufacturing stocks we track reported a mixed Q4. As a group, revenues beat analysts’ consensus estimates by 1.4% while next quarter’s revenue guidance was 1.9% below.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 9.8% since the latest earnings results.
Best Q4: Benchmark (NYSE:BHE)
Operating as a critical behind-the-scenes partner for complex technology products since 1979, Benchmark Electronics (NYSE:BHE) provides advanced manufacturing, engineering, and technology solutions for original equipment manufacturers across aerospace, medical, industrial, and technology sectors.
Benchmark reported revenues of $656.9 million, down 5% year on year. This print was in line with analysts’ expectations, and overall, it was a strong quarter for the company with a solid beat of analysts’ EPS estimates.
“The past year has reinforced that our strategy is working, as we have continued to drive margin expansion and free cash flow generation. Our demonstrated execution across cycles gives me confidence in our ability to continue to drive value for our stakeholders,” said Jeff Benck, Benchmark’s President and CEO.
Benchmark Total Revenue
The stock is down 7.4% since reporting and currently trades at $40.39.
With manufacturing facilities spanning the globe from China to Mexico to the United States, Jabil (NYSE:JBL) provides electronics design, manufacturing, and supply chain solutions to companies across various industries, from healthcare to automotive to cloud computing.
Jabil reported revenues of $6.73 billion, flat year on year, outperforming analysts’ expectations by 5.1%. The business had a strong quarter with an impressive beat of analysts’ full-year EPS guidance estimates.
Jabil Total Revenue
Jabil scored the highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 6.3% since reporting. It currently trades at $148.29.
With roots dating back to 1946 and a focus on components that must perform flawlessly in critical situations, Knowles (NYSE:KN) designs and manufactures specialized electronic components like high-performance capacitors, microphones, and speakers for medical technology, defense, and industrial applications.
Knowles reported revenues of $142.5 million, down 33.8% year on year, falling short of analysts’ expectations by 2.4%. It was a disappointing quarter as it posted revenue guidance for next quarter missing analysts’ expectations and a significant miss of analysts’ EPS guidance for next quarter estimates.
Knowles delivered the slowest revenue growth in the group. As expected, the stock is down 10.7% since the results and currently trades at $16.30.
With over 90 years of connecting the world's technologies, Amphenol (NYSE:APH) designs and manufactures connectors, cables, sensors, and interconnect systems that enable electrical and electronic connections across virtually every industry.
Amphenol reported revenues of $4.32 billion, up 29.8% year on year. This number surpassed analysts’ expectations by 5.8%. Taking a step back, it was a slower quarter as it logged full-year revenue guidance missing analysts’ expectations.
Amphenol delivered the biggest analyst estimates beat and fastest revenue growth, but had the weakest full-year guidance update among its peers. The stock is down 4.2% since reporting and currently trades at $69.64.
With roots dating back to 1832, making it one of America's oldest continuously operating companies, Rogers (NYSE:ROG) designs and manufactures specialized engineered materials and components used in electric vehicles, telecommunications, renewable energy, and other high-performance applications.
Rogers reported revenues of $192.2 million, down 6.1% year on year. This result was in line with analysts’ expectations. However, it was a softer quarter as it recorded revenue guidance for next quarter missing analysts’ expectations and a significant miss of analysts’ EPS guidance for next quarter estimates.
The stock is down 21.7% since reporting and currently trades at $70.05.
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