Profit Grows at Ingram Micro

The company beats earnings estimates.
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Technology distributor

Ingram Micro

(IM)

grew its net income by 45% in the first quarter, beating Wall Street's earnings expectations.

The Santa Ana, Calif., company's profit rose to $61.7 million, or 36 cents a share, from $42.4 million, or 26 cents a share, in the same quarter of 2005. Sales rose 8% to $7.6 billion, despite a 300-basis-point hit due to gains the dollar made against European currencies, the company said.

Net income in the just-reported quarter included a 3-cent-a-share charge for the cost of employee stock options. Analysts polled by Thomson First Call also included the charge in their estimates, which called for a 34-cent profit on sales of $7.4 billion.

"We entered the year with strong momentum from our successes in 2005," said Gregory M. Spierkel, Ingram's CEO. "Sales and net income exceeded the guidance we issued in February, and every region generated operating margins exceeding 100 basis points."

Looking to the second quarter, the company expects to post a profit of 29 cents to 33 cents a share (including the cost of options) on sales of $7.15 billion to $7.35 billion. Analysts were looking for a 33-cent profit on sales of $7.4 billion.

Shares of Ingram Micro recently slipped 7 cents, or 0.4%, in after-hours trading to $19.18 on Instinet.