Notable Mover: Benchmark Electronics Inc. (NYSE:BHE)

Benchmark Electronics Inc. (NYSE:BHE) reported earnings for the three months ended Mar2016 on April 21, 2016. The company earned $0.26 per share on revenue of $549M. Analysts had been modeling earning per share of $0.32 with $575.13M in revenue.

Operating margin (non-GAAP) was 3.5%. The GAAP margin was 3.0%.

Cash flows from operating activities were $77 million.

Accounts receivable were $414 million at March 31, 2016, and calculated days sales outstanding were 68 days compared to 69 days at December 31, 2015.

Inventories were $390 million at March 31, 2016; inventory turns were 5.1 times compared to 5.6 times at December 31, 2015.

Cash was $519 million at March 31, of which $477 million was held outside the U.S.

The cash conversion cycle increased by 6 days from the previous quarter primarily due to higher levels of inventory resulting from lower than expected revenues during the quarter.  Benchmark continues to execute initiatives to drive working capital improvements, and the Company continues to target a 15-20% reduction in cash cycle days exiting 2016.

Benchmark Electronics Inc. earnings per share showed an increasing trend of 22.2% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 156%.Analysts project EPS growth over the next 5 years at 12.52%. It has EPS annual growth over the past 5 fiscal years of 7.6% when sales grew 1.1. It reported -11.5% sales drop, and -17.9% EPS decline in the last quarter.

The stock is trading at $20.73, up 12.91% from 52-week low of $18.36. The stock trades down -12.57% from its peak of $23.58 and 4.2% above the consensus price target of $21.6. Its volume clocked up at 0.53 million shares which is higher than the average volume of 0.34 million shares. Its market capitalization currently stands at $1.02B.