Ingram Micro Q3 Adj. Profit Meets View, Revenues Beat

(RTTNews) - IT products distributor Ingram Micro Inc. (IM) on Thursday reported a 9 percent decline in profit for the third quarter from last year, as higher one-time charges and expenses more than offset double-digit growth revenues.

However, adjusted earnings per share for the quarter matched analysts expectations, while revenues beat their estimates. Looking ahead, the company forecast earnings for the fourth quarter in line with Street estimates and projected revenue growth above their expectations.

Ingram Micro is the world's largest wholesale technology distributor and a provider of supply-chain and mobile device lifecycle services.

Santa Ana, California-based Ingram Micro's third-quarter net earnings were $72.23 million or $0.45 per share, down from $78.94 million or $0.50 per share in the same period last year.

The latest quarter's results include, among others, reorganization, integration and transition costs of $0.13 per share. The prior-year quarter's results included reorganization, integration and transition costs of $0.05 per share.

Excluding items, adjusted net earnings for the quarter were $98 million or $0.62 per share, compared with $83 million or $0.53 per share a year ago. On average, nine analysts polled by Thomson Reuters expected the company to report earnings of $0.62 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter rose 11 percent to $11.24 billion from $10.15 billion in the prior-year period. Analysts had a consensus revenue estimate of $10.92 billion for the quarter.

Operating expenses for the quarter were $526.37 million, up 14 percent from last year.

Gross margin for the quarter declined to 5.78 percent from 5.90 percent in the year-ago period, as revenue growth was led by a greater mix of high volume sales, particularly in mobility and systems. Operating margin declined 29 basis points to 1.07 percent.

Looking ahead to the fourth quarter, Ingram Micro expects worldwide revenue to increase year-over-year between 8 percent to 12 percent, with adjusted earnings in a range of $0.95 to $1.02 per share.

Analysts expect the company to report earnings of $0.97 per share for the quarter on revenue growth of 5.1 percent to $12.44 billion.

IM closed Thursday's regular trading at $24.86, up $0.55 or 2.26 percent on a volume of 2.24 million shares. In after hours, the stock further gained $0.44 or 1.17 percent to $25.30.