Benchmark Electronics tumbles on Q2 earnings, $100M share repurchase program
Contract manufacturing provider Benchmark Electronics Inc. (NYSE:BHE) has shed 23% in today’s trading after the company announced lower second-quarter earnings and a $100 million share repurchase plan. For the quarter ended June 30, net income was $22 million, or $0.33 per share, compared with $26 million, or $0.35 a share, for the same quarter a year ago. Sales were $682 million, versus $756 million for the period a year earlier.
“Operationally our execution was solid during the second quarter, although revenues were impacted by maturing programs declining at a more rapid pace than our new programs ramped, and by the impact of a soft macro environment. We believe this is a near-term challenge and that we are well positioned for growth, given the number of new programs that we have won,” said CEO Cary T. Fu in a statement.
Also ahead of the opening, the Angleton, Texas-based company said it was authorizing the repurchase of up to $100 million of its outstanding common shares.
In today’s trading, shares are at $14.60 at 10:53 a.m. ET, down $4.42 from Wednesday’s close. Trading volume has soared well above 1 million shares.
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