The 10-second takeaway
For the quarter ended June 29 (Q2), Ingram Micro met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share increased significantly. GAAP earnings per share increased.
Gross margins increased, operating margins dropped, net margins were steady.
Ingram Micro logged revenue of $10.31 billion. The eight analysts polled by S&P Capital IQ predicted revenue of $10.45 billion on the same basis. GAAP reported sales were 17% higher than the prior-year quarter's $8.78 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.55. The nine earnings estimates compiled by S&P Capital IQ predicted $0.46 per share. Non-GAAP EPS of $0.55 for Q2 were 41% higher than the prior-year quarter's $0.39 per share. GAAP EPS of $0.45 for Q2 were 13% higher than the prior-year quarter's $0.40 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 5.8%, 60 basis points better than the prior-year quarter. Operating margin was 1.1%, 10 basis points worse than the prior-year quarter. Net margin was 0.7%, much about the same as the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $10.52 billion. On the bottom line, the average EPS estimate is $0.53.
Next year's average estimate for revenue is $42.97 billion. The average EPS estimate is $2.27.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 178 members out of 193 rating the stock outperform, and 15 members rating it underperform. Among 68 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 64 give Ingram Micro a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ingram Micro is hold, with an average price target of $19.64.
Looking for alternatives to Ingram Micro? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.
- Add Ingram Micro to My Watchlist.
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. The Motley Fool has no position in any of the stocks mentioned. 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.