Zacksadvisor.comStock of the Day for Wednesday, May 8th, 2002
from Zacksadvisor.com
Exchange: New York
Symbol: bhe
Last Price 29.60 High Price 29.75 Low Price 28.40
Total Volume 453,400 Previous Close 26.99 52 Week High 32.22 52 Week Low 14.45
EPS Estimate (F1)
1.02
The Stock of the Day feature is designed to highlight one of the current recommendations on the Zacks Focus List or Timely Buys list.
The timing of these picks will be in line with the philosophy of the respective portfolio, and in regards to the overall health of the
market. Or, in other words, we are not daytraders, and thus are not suggesting that the stock will rise today.
Benchmark Electronics (BHE)
Streams of electronics gear flow from the workbenches of Benchmark Electronics. The
company, which provides contract manufacturing services to electronics makers,
produces complex printed circuit boards and other subsystems used in business
computers (44% of sales), telecommunications equipment (31%), industrial control
equipment, and medical and testing instruments. Its services include design,
engineering, prototyping, assembly, testing, and distribution. Sun Microsystems and
EMC together account for 37% of Benchmark's sales. Benchmark, which has facilities
in Asia, Europe, and the Americas, is using acquisitions to speed its global expansion.
Benchmark Electronics recently announced the pricing of a public offering of 3,750,000 shares of its common stock
at a public offering price of $27.00 per share under its currently effective shelf registration statement. The Company
had also granted the underwriters an option to purchase up to an additional 562,500 shares to cover
over-allotments, if any.
Benchmark reported net income of $5.3 million, or 26 cents per share for the first quarter of fiscal 2002, compared
with $5.1 million, or 25 cents per share, a year earlier. Citing lackluster growth in the technology sectors, the
company said its sales fell 23.8 percent, to $329.2 million from $431.9 million. But interest expenses were cut in half,
it said. The company said it expects second-quarter revenues of $330 million to $350 million, and earnings per share
of 25 cents to 28 cents.
We added BHE to the Focus List as the company raised its guidance for the second quarter during the last earnings
report. Benchmark has done well in a tough environment for contract manufacturers and we expect it to do better
as the situation improves for technology companies. Shares of BHE are trading at 26 times 2002 EPS estimate of
$1.02 and 22 times next fiscal year's estimate of $1.26. There are nine analysts following BHE at the present time:
one has a Strong Buy rating, five have a Buy rating, and three have a Hold rating on BHE shares.