Benchmark Electronics

(BHE) - Get Report

beat on both the top and bottom lines for the third quarter, and provided solid guidance for the current quarter.

Shares dipped in Thursday trading, falling 56 cents to $27.

Reporting before the bell on Thursday, the electronics manufacturing services firm posted a net income of $29.3 million, or 45 cents a share, vs. $20.3 million, or 32 cents a share a year ago.

Excluding some items, the company made $30.1 million, or 46 cents a share, beating the average Thomson First Call forecast by 3 cents.

Benchmark reported $769.5 million in revenue, climbing from $561.5 million in the same quarter last year. That figure plowed past the $736.9 million that analysts anticipated.

For the fourth quarter, Benchmark expects EPS between 41 cents and 44 cents, at or better than what analysts anticipate. Revenue will range from $710 million to $740 million, bracketing the consensus forecast of $713.4 million.

RBC analyst Amit Daryanani rates the company outperform and noted that the company surpassed expectations despite lack of margin improvement and cash flow generation. EBIT margins were flat at 4.7% and gross margins declined 20 basis points to 6.8%. Inventory also increased due to new product launches. Daryanani does not own Benchmark shares.

The company, which announced Tuesday that it had purchased

Pemstar

( PMTR) in a

$211 million deal, should be successful integrating the two companies, wrote Daryanani, but "there is now execution risk that previously did not exist."

"Our teams continued to deliver solid results during the quarter, while running at record levels. Our focus will be on working capital metric improvements during upcoming quarters in addition to our ongoing focus on volume ramps of programs," Benchmark's President and CEO Cary Fu said in a press release.