Brightpoint (Nasdaq: CELL) came in under analyst estimates last quarter but now have a chance to fix things this quarter. The company will unveil its latest earnings Thursday. Brightpoint is engaged in providing supply chain solutions to the wireless industry.

What analysts say:

  • Buy, sell, or hold?: Analysts strongly back Brightpoint, with seven of 10 rating it a buy and the remainder rating it a hold. Analysts like Brightpoint better than competitor TESSCO Technologies overall. Analysts still rate the stock a moderate buy, but they are a bit more wary about it compared with three months ago.
  • Revenue forecasts: On average, analysts predict $1.1 billion in revenue this quarter. That would represent a rise of 39.5% from the year-ago quarter.
  • Wall Street earnings expectations: The average analyst estimate is earnings of $0.15 per share. Estimates range from $0.13 to $0.18.

What our community says:
CAPS All-Stars are solidly behind the stock, with 96.9% giving it an "outperform" rating. The community at large agrees with the All-Stars, with 96.1% granting it a rating of "outperform." Fools are gung-ho about Brightpoint, though the message boards have been quiet lately with only 99 posts in the past 30 days. Even with a robust four out of five stars, Brightpoint's CAPS rating falls a little short of the community's upbeat outlook.

Management:
Brightpoint's profit has risen year over year by an average of more than sixfold. Revenue has now gone up for three straight quarters.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters.

Quarter

Q1

Q4

Q3

Q2

Gross Margin

7.8%

8.5%

8.6%

9.0%

Operating Margin

1.3%

2.0%

1.6%

1.6%

Net Margin

0.8%

1.4%

1.1%

0.4%

For all our Brightpoint-specific analysis, including earnings and beyond, add Brightpoint to My Watchlist.

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