* Sees Q1 adj EPS $0.23-$0.26 vs prior view $0.30-$0.36
* Sees Q1 rev $540 mln vs prior view $565-$605 mln
* Sees rebound in Q2 (Adds analysts comments, updates share price)
April 11 (Reuters) - Contract electronics manufacturer Benchmark Electronics Inc lowered its first-quarter outlook, hurt by softer-than-expected demand and as some of its clients look to get rid of excess inventory, sending its shares down 4 percent.
The company that competes with Flextronics International , Celestica Inc , Nam Tai Electronics Inc , Jabil Circuit Inc , and Plexus Corp said it anticipates sales to rebound in the second quarter.
The outlook cut may be the result of a slowing sales cycle due to lower technology spend and increased competition, Ticonderoga Securities analyst Brian White wrote in a research note.
“Our view remains that the easy money in the electronics manufacturing services stocks has already been made and now the group is fighting a decelerating sales cycle, a lower margin expansion opportunity and the risk of approaching peak profit levels,” White said.
Benchmark now expects earnings of 23-26 cents per share, excluding items, down from its earlier estimate of 30-36 cents per share.
It lowered its revenue forecast to about $540 million, from $565-$605 million earlier.
Analysts on average were expecting adjusted earnings of 33 cents per share on revenue of $587.3 million, according to Thomson Reuters I/B/E/S.
Shares of the Angleton, Texas-based company were trading at $17.69 on the New York Stock Exchange on Monday. (Reporting by Rachana Khanzode in Bangalore; Editing by Jarshad Kakkrakandy)