This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Ingram Micro's Strong Sales Not Enough

SANTA ANA, Calif. ( TheStreet) - Ingram Micro's (IM - Get Report) fourth-quarter sales came in well ahead of Wall Street's average view but the company's stock fell in extended trades as its profit came in a penny short because of weak gross margins.

The Santa Ana, Calif.-based technology products distributor enjoyed revenue of $9.88 billion, up from $8.81 billion in the same period last year, and well above Wall Street's forecast of $9.57 billion.

The company reported a profit of $115 million, or 71 cents a share, for the December period, including a gain of 5 cents a share related to a partial release of reserves for commercial taxes on software imports into Brazil. Excluding that gain, earnings per share would total 66 cents a share, just shy of the average estimate of analysts polled by Thomson Reuters.

The company's results follow good quarterly numbers from a slew of big-name technology firms, including Apple (AAPL - Get Report) , IBM (IBM - Get Report) and McAfee (MFE), and suggest that corporations are beefing up their technology infrastructure.

"Sales levels for Asia-Pacific and Latin America reached quarterly highs and sales growth in North America - for both the fourth quarter and the year - was the strongest in 10 years," said Gregory Spierkel, the Ingram Micro CEO, in a statement. "Strong demand for technology products provided a welcome tailwind."

The firm's fourth-quarter gross margin, however, was 5.66%, a decrease of three basis points compared to the prior year's quarter, and Spierkel prepped Wall Street for more of the same in the current quarter.

"We expect [first-quarter] sales to follow a historical seasonal pattern, with a normal sequential decline and modest year-over-year growth," he said in the statement. "Gross margins are also expected to decline sequentially due to seasonality and competitive dynamics in certain markets."

Shares of Ingram Micro shares dipped 79 cents, or 3.8%, to $19.99 in extended trading on Thursday.

-- Written by James Rogers in New York.

>To follow the writer on Twitter, go to

>To submit a news tip, send an email to:

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.64 -0.11%
IM $34.85 -0.29%
IBM $145.27 -0.46%
FB $118.57 0.84%
GOOG $698.21 0.75%


Chart of I:DJI
DOW 17,891.16 +117.52 0.66%
S&P 500 2,081.43 +16.13 0.78%
NASDAQ 4,817.5940 +42.2360 0.88%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs