Ingram Micro Misses on Q1 ProfitThursday, April 24, 2014
Santa Ana-based Ingram Micro Inc. on Wednesday reported first-quarter revenue in line with Wall Street expectations and adjusted profit below estimates.
The company, which operates under razor-thin margins, posted revenue of $10.4 billion in the recently ended quarter, up 1% compared to a year earlier.
Analysts on average forecast revenue of $10.42 billion.
Net income hit nearly $68 million, up 6.7% from a year ago and below Wall Street estimates of $74.1 million.
Ingram’s gross margin hit 5.88%, up from 5.7% from a year ago, largely driven by higher margin businesses acquired from last year’s buys of Softcom, Shipwire and CloudBlue, which also added IT equipment disposal.
Ingram Micro is the world’s largest distributor of computers, software and other technology products with sprawling operations around the globe.
The company projects revenue in the current quarter to increase in the low- to mid-single digits and a slight improvement in gross margins.
Wall Street is expecting an adjusted profit of $85 million on revenue of $10.56 billion.
Ingram shares were off about 11% in afternoon trading Thursday to a market value of $4.18 billion.