Ingram Micro Inc. IM reported second-quarter 2016 non-GAAP earnings (excluding amortization of intangible assets, reorganization charges and other one-time items) of 61 cents per share, which beat the Zacks Consensus Estimate of 49 cents. Also, earnings increased from 55 cents reported in the year-ago quarter.
Ingram Micro Inc. (IM) Street EPS & Surprise Percent - Last 5 Quarters | FindTheCompany
Quarter Details
Though Ingram Micro’s second-quarter revenues of $10.123 billion beat the Zacks Consensus Estimate of $9.741 billion, it decreased 4.1% from the year-ago quarter. The year-over-year decrease was primarily due to the negative impact of foreign currency translation.
Geographically, revenues from North America, Europe, Latin America and Asia-Pacific came in at $4.43 billion, $2.78 billion, $650.9 million and $2.26 billion, respectively.
Ingram Micro’s gross margin was 7.1% compared with 6.2% in the year-ago quarter. The company’s non-GAAP operating expenses increased 11.2% year over year to $573.3 million. Also, as a percentage of revenues, expenses were up 77 basis points (bps), primarily due to higher selling, general and administrative expenses.
The company recorded a 4.5% increase in non-GAAP operating income to $157.1 million, primarily due to better mix of high value business. Operating margin also increased 12 bps year over year to 1.6%.
Ingram Micro reported non-GAAP net income of $92.1 million or 61 cents per share. Non-GAAP net income excludes the effect of intangible assets, reorganization charges and other one-time items.
Ingram Micro exited the second quarter with cash and cash equivalents of $878.9 million compared with $1.12 billion in the previous quarter. Accounts receivable were $5.13 billion. Total debt (including current portion) was $1.31 billion compared with $1.22 billion in the last quarter.
The company generated cash flow of approximately $29.3 million from operational activities during the quarter.
INGRAM MICRO Price, Consensus and EPS Surprise
INGRAM MICRO Price, Consensus and EPS Surprise | INGRAM MICRO Quote
Conclusion
Ingram Micro reported better-than-expected second-quarter 2016 results, with both the top and bottom lines surpassing the Zacks Consensus Estimate. However, revenues decreased on a year-over-year basis primarily due to foreign exchange fluctuations.
Nonetheless, the company’s focus on the high-margin market and strategic acquisitions to increase market share are encouraging.
Ingram Micro has been striking distribution deals with a number of original equipment manufacturers, thereby expanding its product portfolio. Additionally, Ingram Micro’s exposure in cloud computing products is expected to drive growth.