Shares of Santa Ana’s Ingram Micro Inc., the world’s biggest distributor of technology products, software and consumer electronics, fell early Friday after an analyst downgraded the stock.
Investors sent shares down almost 6% on a recent market value of about $2 billion.
Needham & Co. analyst Richard Kugele downgraded Ingram Micro to “hold” from “buy” and cut his fourth-quarter estimates.
“Although Ingram will clearly be one of the survivors out of the current
macroeconomic maelstrom, we believe that the company has the greatest challenges from a cost perspective of the three technology distributors we cover,” he said in a note to clients.
Kugele expects the company to report profits of $46 million on sales of $8.6 billion. That’s down from his previous estimates of $51 million in profits on $8.7 billion in revenue.
Wall Street analysts, on average, are expecting profits of $64 million on sales of $9.01 billion.
Ingram Micro is set to report fourth quarter results Feb. 18.
