Brightpoint Inc. Earnings Cheat Sheet: Beats Analysts’ Estimates

Brightpoint, Inc. (NASDAQ:CELL) reported net income above Wall Street’s expectations for the third quarter. Brightpoint is engaged in providing supply chain solutions to the wireless industry.

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Brightpoint Earnings Cheat Sheet for the Third Quarter

Results: Net income for Brightpoint, Inc. rose to $13.8 million (20 cents per share) vs. $9.8 million (14 cents per share) in the same quarter a year earlier. This marks a rise of 40.7% from the year earlier quarter.

Revenue: Rose 50.5% to $1.34 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: CELL reported adjusted net income of 29 cents per share. By that measure, the company beat the mean estimate of 21 cents per share. It beat the average revenue estimate of $1.27 billion.

Quoting Management: “I am pleased we were able to deliver strong financial results for the third quarter of 2011,” said Vince Donargo, Brightpoint’s Chief Financial Officer and Treasurer. “Our strong financial position allowed us to extend and amend our credit facility, increasing our borrowing capacity to $500 million from our previous capacity of $450 million. Our ROIC was 14 percent for the trailing twelve months, which is within our long-term targeted range of 12 to 15 percent and reflects our disciplined and successful approach to managing our balance sheet and our overall business. Our $32 million of EBITDA was a record for a third quarter and our year to date EBITDA of $85 million is also a record for the first nine months of a fiscal year.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose more than threefold and in the first quarter, the figure rose more than sixfold.

Revenue has risen the past four quarters. Revenue increased 56.6% to $1.23 billion in the second quarter. The figure rose 40.2% in the first quarter from the year earlier and climbed 23.7% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company has now beaten estimates the last two quarters. In the second quarter, it topped expectations with net income of 20 cents versus a mean estimate of net income of 15 cents per share.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the fourth quarter is 30 cents per share, down from 32 cents ninety days ago. For the fiscal year, the average estimate has moved up from 82 cents a share to 85 cents over the last sixty days.

Competitors to Watch: TESSCO Technologies, Inc. (NASDAQ:TESS), InfoSonics Corporation (NASDAQ:IFON), Ingram Micro Inc. (NYSE:IM), Arrow Electronics, Inc. (NYSE:ARW), Avnet, Inc. (NYSE:AVT), ADDvantage Tech. Group, Inc. (NASDAQ:AEY), Motorola Mobility Hldgs. Inc (NYSE:MMI), Tech Data Corporation (NASDAQ:TECD), Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC), and SYNNEX Corporation (NYSE:SNX).

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

(Source: Xignite Financials)