Why Ingram Micro (IM) Is Jumping Today

NEW YORK (TheStreet) -- Ingram Micro (IM) was gaining 12.5% to $29.20 on Friday after fourth-quarter earnings and revenue topped Wall Street estimates.

The computer wholesale company reported earnings of 88 cents a share, beating analyst estimates of 78 cents a share. Revenue rose 4% year over year to $11.83 billion. Analysts surveyed by Thomson Reuters expected revenue of $11.53 billion for the quarter.

For the first quarter, Ingram said it expects revenue to drop by low double-digits percentage. For the full year, the company expects revenue to rise by low- to mid-single-digits.

The company also announced it will re-organize in an effort to save between $80 million and $100 million in costs per year.

Must read: 3 Wholesale Stocks On The Rise

TheStreet Ratings team rates INGRAM MICRO INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about its recommendation:

"We rate INGRAM MICRO INC (IM) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, increase in net income and attractive valuation levels. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • IM's revenue growth has slightly outpaced the industry average of 4.9%. Since the same quarter one year prior, revenues rose by 12.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 42.85% and other important driving factors, this stock has surged by 30.02% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, IM should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • INGRAM MICRO INC has improved earnings per share by 42.9% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, INGRAM MICRO INC increased its bottom line by earning $1.99 versus $1.54 in the prior year. This year, the market expects an improvement in earnings ($2.27 versus $1.99).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Electronic Equipment, Instruments & Components industry. The net income increased by 48.1% when compared to the same quarter one year prior, rising from $53.31 million to $78.94 million.

If you liked this article you might like

Fishing for Acquisition Candidates in a Shallow Deep-Value Pond

Is Kulicke & Soffa a Buyout Candidate?

David Einhorn Cashed Out of These 9 Stocks

Heavy Early Morning Activity On Ingram Micro (IM)

Strong And Under The Radar Today: Ingram Micro (IM)