(By Balaseshan) Benchmark Electronics Inc. (NYSE: BHE) reported a jump in quarterly earnings on higher revenue as well as Thailand flood related insurance recoveries. Results exceeded Street's expectations, yet the provider of integrated contract manufacturing guided first quarter below consensus.
Earnings for the fourth quarter were $18.12 million or $0.33 per share, higher than last year's $2.88 million or $0.05 per share. Adjusted earnings per share (EPS) rose to $0.33 from $0.17.
Sales increased 13.4% to $633.93 million.
Analysts, on average, polled by Thomson Reuters had expected a profit of $0.29 per share on revenue of $597.92 million for the fourth quarter.
[Related -How IBM’s Q3 Results Impact Tech Supply Chain]
The company said Thailand flood related charges included $3 million of insurance recoveries in excess of previously recognized inventory and property, plant and equipment losses offset by costs directly attributable to the Thailand flood.
Thailand flood insurance recoveries included $1 million for property, plant and equipment losses and $2 million for inventory losses. The claims and recovery process with insurance carriers is ongoing, the company noted.
Looking ahead into the first quarter, the company expects adjusted earnings of $0.17 to $0.21 per share and revenue of $530 million to $560 million, while Street analysts predict EPS of $0.27 per share on revenue of $579.90 million.
The company said a strong pull-through of orders in the fourth quarter of 2012 to support customer requirements has contributed to a reduced revenue outlook in the first quarter.
[Related -These 10 Stocks Are Ridiculously Cheap]
"We believe the increased orders in the fourth quarter contribute to our softer revenue expectations for the first quarter. However, with robust recent bookings, we anticipate rebounding our revenue in 2013 despite the current market headwinds," said Gayla Delly, President and CEO of Benchmark Electronics.
BHE closed Friday's regular session up 1.94% at $17.90. The stock has been trading between $12.54 and $18.87 for the past 52 weeks.