The early read on the Brightpoint deal is fairly positive. It was accretive to earnings, to the tune of 4 cents per diluted share for the fourth quarter. Ingram expects the buy to add "at least" 18 cents per diluted share in 2013.
Ingram ended the year with $595 million in cash, or just under $4 per share in cash, and $1.05 billion in debt, $943 million of which is long-term. The increase in debt (from $400 million end of last year), and decrease in cash (from $891 million), is primarily due to the Brightpoint acquisition. We'll see if the move pays off for Ingram, but so far, so good.
In terms of expectations, Ingram is currently trading at about 9 times 2013 consensus estimates, and 8 times 2014 estimates.
Frankly, owning Ingram for much of the past couple of years has at times been downright boring; par for the course in value land. We'll see if there's more excitement ahead.At the time of publication the author is long IM. Follow @JonMHellerCFA This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
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