Ingram Micro (NYSE: IM) is trading down about 7% pre-market after the company warned about its results ahead. The technology product distribution company noted that soft economies globally are going to keep it from meeting its quarterly financial targets.
Ingram now expects earnings of $0.18 to $0.23. Thatjust won’t cut it. First Call has analysts’ estimates of $0.37 for earnings. The company previously gave guidance of around $0.36. Revenue also isexpected to be $8.3 billion to $8.6 billion, below its previous forecast of $8.5 billion to $8.8 billion. First Call revenue estimates are for$8.71 billion.
The tech distributor also in the process of exiting itslower return operations, although that is buried as a footnote when youconsider the earnings warning on another bad day in the markets. Oneissue that the company noted specifically is the lack of a recovery in its business in Europe that occurs in September asEuropeans return to work after their long vacations. While it saidNorth America is relatively stable, Ingram’s management noted noted asystem-wide and broad-based economic softness.
Shares are down over 7% in fairly thin trading volume this morning. At$16.20, it still hasn’t broken through the $14.86 low of the last52-weeks seen in March. This is also pulling down shares of competitor Tech Data Corp. (NASDAQ: TECD).
Jon C. Ogg
September 16, 2008