We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Ingram Micro (IM) Beats on Q3 Earnings, Misses Revenues
Read MoreHide Full Article
Ingram Micro Inc. reported third-quarter 2016 non-GAAP earnings (excluding amortization of intangible assets, reorganization charges and other one-time items) of 71 cents per share, which beat the Zacks Consensus Estimate of 63 cents. Also, earnings increased from 67 cents reported in the year-ago quarter.
Quarter Details
Ingram Micro’s third-quarter revenues of $10.226 billion not only lagged the Zacks Consensus Estimate of $10.346 billion, but also decreased 2.7% from the year-ago quarter. The year-over-year decrease was primarily due to the negative impact of foreign currency translation.
Geographically, revenues from North America, Europe, Latin America and Asia-Pacific came in at $4.522 billion, $2.748 billion, $638.4 million and $2.318 billion, respectively.
Ingram Micro’s gross margin was 7% compared with 6.3% in the year-ago quarter. The company’s non-GAAP operating expenses increased 7.6% year over year to $550.2 million. Also, as a percentage of revenues, expenses were up 52 basis points (bps), primarily due to higher selling, general and administrative expenses.
The company recorded a 4.7% increase in non-GAAP operating income to $176.6 million, primarily due to better mix of high value business. Operating margin also increased 13 bps year over year to 1.7%.
Ingram Micro reported non-GAAP net income of $107.4 million. Non-GAAP net income excludes the effect of intangible assets, reorganization charges and other one-time items.
Ingram Micro exited the third quarter with cash and cash equivalents of $689.1 million compared with $878.9 million in the previous quarter. Accounts receivable were $5.27 billion. Total debt (including current portion) was $1.33 billion compared with $1.31 billion in the last quarter.
The company used cash flow of approximately $136.9 million from operational activities during the quarter.
Ingram Micro reported mixed third-quarter 2016 results, wherein the top line missed the Zacks Consensus Estimate and the bottom line surpassed the same. Also, revenues decreased on a year-over-year basis primarily due to foreign exchange fluctuations.
Nonetheless, the company’s focus on the high-margin market and strategic acquisitions to increase market share are encouraging.
Ingram Micro has been striking distribution deals with a number of original equipment manufacturers, thereby expanding its product portfolio. Additionally, Ingram Micro’s exposure in cloud computing products is expected to drive growth.
Going forward, we remain fairly optimistic about Ingram Micro’s strategic relationship with network giants such as Juniper Networks Inc. (JNPR - Free Report) and International Business Machines (IBM - Free Report) . The company’s growing exposure in the small and medium business (SMB) and improving profitability are encouraging. However, its significant European exposure and debt burden remain concerns.
Currently, Ingram Micro has a Zacks Rank #3 (Hold).
Box has a long-term expected earnings per share growth rate of 73.86%.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Ingram Micro (IM) Beats on Q3 Earnings, Misses Revenues
Ingram Micro Inc. reported third-quarter 2016 non-GAAP earnings (excluding amortization of intangible assets, reorganization charges and other one-time items) of 71 cents per share, which beat the Zacks Consensus Estimate of 63 cents. Also, earnings increased from 67 cents reported in the year-ago quarter.
Quarter Details
Ingram Micro’s third-quarter revenues of $10.226 billion not only lagged the Zacks Consensus Estimate of $10.346 billion, but also decreased 2.7% from the year-ago quarter. The year-over-year decrease was primarily due to the negative impact of foreign currency translation.
Geographically, revenues from North America, Europe, Latin America and Asia-Pacific came in at $4.522 billion, $2.748 billion, $638.4 million and $2.318 billion, respectively.
Ingram Micro’s gross margin was 7% compared with 6.3% in the year-ago quarter. The company’s non-GAAP operating expenses increased 7.6% year over year to $550.2 million. Also, as a percentage of revenues, expenses were up 52 basis points (bps), primarily due to higher selling, general and administrative expenses.
The company recorded a 4.7% increase in non-GAAP operating income to $176.6 million, primarily due to better mix of high value business. Operating margin also increased 13 bps year over year to 1.7%.
Ingram Micro reported non-GAAP net income of $107.4 million. Non-GAAP net income excludes the effect of intangible assets, reorganization charges and other one-time items.
Ingram Micro exited the third quarter with cash and cash equivalents of $689.1 million compared with $878.9 million in the previous quarter. Accounts receivable were $5.27 billion. Total debt (including current portion) was $1.33 billion compared with $1.31 billion in the last quarter.
The company used cash flow of approximately $136.9 million from operational activities during the quarter.
INGRAM MICRO Price, Consensus and EPS Surprise
INGRAM MICRO Price, Consensus and EPS Surprise | INGRAM MICRO Quote
Conclusion
Ingram Micro reported mixed third-quarter 2016 results, wherein the top line missed the Zacks Consensus Estimate and the bottom line surpassed the same. Also, revenues decreased on a year-over-year basis primarily due to foreign exchange fluctuations.
Nonetheless, the company’s focus on the high-margin market and strategic acquisitions to increase market share are encouraging.
Ingram Micro has been striking distribution deals with a number of original equipment manufacturers, thereby expanding its product portfolio. Additionally, Ingram Micro’s exposure in cloud computing products is expected to drive growth.
Going forward, we remain fairly optimistic about Ingram Micro’s strategic relationship with network giants such as Juniper Networks Inc. (JNPR - Free Report) and International Business Machines (IBM - Free Report) . The company’s growing exposure in the small and medium business (SMB) and improving profitability are encouraging. However, its significant European exposure and debt burden remain concerns.
Currently, Ingram Micro has a Zacks Rank #3 (Hold).
Investors may consider a better-ranked technology stock, Box, Inc. (BOX - Free Report) , carrying a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here
Box has a long-term expected earnings per share growth rate of 73.86%.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>