Brokers Are Upgrading Their Views On Benchmark Electronics, Inc. (NYSE:BHE) With These New Forecasts

Shareholders in Benchmark Electronics, Inc. (NYSE:BHE) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with analysts modelling a real improvement in business performance.

After the upgrade, the twin analysts covering Benchmark Electronics are now predicting revenues of US$2.9b in 2022. If met, this would reflect a meaningful 11% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to surge 32% to US$1.83. Before this latest update, the analysts had been forecasting revenues of US$2.6b and earnings per share (EPS) of US$1.49 in 2022. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.

View our latest analysis for Benchmark Electronics

Despite these upgrades, the analysts have not made any major changes to their price target of US$35.33, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Benchmark Electronics at US$38.00 per share, while the most bearish prices it at US$34.00. Still, with such a tight range of estimates, it suggests the analysts have a pretty good idea of what they think the company is worth.

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 display 24% annualised growth until the end of 2022. If achieved, this would be a much better result than the 2.7% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 6.9% per year. Not only are Benchmark Electronics' revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. The lack of change in the price target is puzzling, but with a serious upgrade to this year's earnings expectations, it might be time to take another look at Benchmark Electronics.

Analysts are clearly in love with Benchmark Electronics at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as concerns around earnings quality. For more information, you can click through to our platform to learn more about this and the 1 other warning sign we've identified .

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.