IT distribution giant Ingram Micro (NYSE: INGM) will be reporting results tomorrow after market hours. Here’s what to expect.
Ingram Micro beat analysts’ revenue expectations by 1.2% last quarter, reporting revenues of $13.34 billion, up 2.5% year on year. It was a slower quarter for the company, with a significant miss of analysts’ EPS guidance for next quarter estimates.
Is Ingram Micro a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Ingram Micro’s revenue to grow 2.5% year on year to $11.61 billion, a reversal from the 2% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.57 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Ingram Micro has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time since going public by 0.7% on average.
Looking at Ingram Micro’s peers in the it distribution & solutions segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Connection delivered year-on-year revenue growth of 10.9%, beating analysts’ expectations by 8.5%, and Avnet reported a revenue decline of 6%, in line with consensus estimates. Connection traded up 7% following the results while Avnet was down 4.8%.
Read our full analysis of Connection’s results here and Avnet’s results here.
There has been positive sentiment among investors in the it distribution & solutions segment, with share prices up 14.2% on average over the last month. Ingram Micro is up 25.3% during the same time and is heading into earnings with an average analyst price target of $23.77 (compared to the current share price of $18.30).
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