The 10-second takeaway
For the quarter ended March 31 (Q1), Brightpoint beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share contracted significantly.
Margins contracted across the board.
Brightpoint notched revenue of $1.37 billion. The eight analysts polled by S&P Capital IQ expected a top line of $1.29 billion on the same basis. GAAP reported sales were 23% higher than the prior-year quarter's $1.11 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.16. The nine earnings estimates compiled by S&P Capital IQ anticipated $0.20 per share. GAAP EPS of $0.04 for Q1 were 69% lower than the prior-year quarter's $0.13 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 6.3%, 150 basis points worse than the prior-year quarter. Operating margin was 0.9%, 50 basis points worse than the prior-year quarter. Net margin was 0.2%, 60 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.34 billion. On the bottom line, the average EPS estimate is $0.23.
Next year's average estimate for revenue is $5.55 billion. The average EPS estimate is $1.07.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 324 members out of 336 rating the stock outperform, and 12 members rating it underperform. Among 82 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 79 give Brightpoint a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Brightpoint is outperform, with an average price target of $12.55.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.