Q1 2024 Benchmark Electronics Inc Earnings Call Transcript
Key Points
- Benchmark Electronics Inc (BHE) achieved a non-GAAP operating margin of 4.9% in Q1, marking a 50 basis point increase year-over-year.
- The company reported a strong performance in the A&D sector with a 33% revenue increase year-over-year, driven by robust demand in commercial aerospace and defense.
- Benchmark Electronics Inc (BHE) raised its free cash flow target for the year from $70 million to $80 million to now $80 million to $90 million, reflecting strong cash generation capabilities.
- The company successfully reduced its inventory by over $140 million year-over-year, enhancing working capital efficiency.
- Benchmark Electronics Inc (BHE) continued to secure new business wins across various sectors, including semi-cap and medical, which are expected to contribute materially to future growth.
- Total revenue of $676 million was down 3% year-over-year and 2% sequentially, with declines noted particularly in the medical and communications sectors.
- The next-generation communications sector revenue declined by 36% year-over-year, with expectations of continued pressure throughout 2024.
- Medical sector revenue decreased by 16% due to industry-wide inventory rebalancing and demand normalization, with continued weakness expected in the near term.
- Advanced Computing sector revenue decreased by 6% year-over-year due to delays in large HPC program builds.
- Despite positive performance in some sectors, Benchmark Electronics Inc (BHE) faces ongoing challenges from macroeconomic conditions and sector-specific issues, impacting overall growth and stability.
And welcome to the Benchmark Electronics to report first quarter 2024 results conference. At this time, all parties are in a listen-only mode. Later, you will have an opportunity to ask questions to ask a question, press star and one on your phone keypad. Star and one. If you'd like to ask a question, you can remove yourself from the queue by pressing star two. Please note that this call is being recorded and I will be standing by should you need any assistance.
I would now like to turn the conference over to Paul Mansky, benchmark, Investor Relations and Corporate Development. Please begin.
We, and thanks, everyone, for joining us today for Benchmark's First Quarter Fiscal Year 2024 earnings call. Joining me this afternoon are Jeff Benck, CEO and President, and Arvind Godbole, Interim CFO. After the market closed today, we issued an earnings release pertaining to our financial performance for the first quarter of 2024, and we prepared a presentation that we'll reference on
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
