Ingram Micro Jumps on Profit Turnaround
Shares in
Ingram Micro
(IM)
jumped about 14% in premarket trading Wednesday, after the company returned to profit in its fourth-quarter and blew away analysts' expectations.
The computer products company had net income of $46.4 million, or 30 cents a share, vs. a net loss of $10.3 million, or 7 cents a share, in the year-ago quarter. Revenue was $6.76 billion. The results came after the markets closed Tuesday.
Excluding items, the company earned $52.3 million, or 34 cents a share, vs. $29.2 million, or 19 cents a share a year ago. Analysts were expecting 23 cents a share, according to Thomson First Call.
Ingram Micro's European operations produced record quarterly sales and operating income, as the region generated 41% of total sales. Sales were $2.77 billion, up 33% from a year ago, thanks partly to the weak dollar. The quarter contained one more week than the year-ago period.
"The quarter's strength was driven by a healthier demand environment, overall excellent operational management in our largest regions and the success of our profit-enhancement program," the company said.
For the first quarter, the company forecast sales of $6.1 billion to $6.3 billion and net income of $36 million to $40 million, or 23 cents to 25 cents a share. Prior to the company's earnings report, analysts were forecasting 19 cents a share for the quarter.
Shares were up $2.15, or 13.4%, to $18.21.