Brightpoint Inc. Earnings: Profit Drop Breaks Three Consecutive Quarters of Profit Increases

Rising revenue was not enough for Brightpoint Inc. (NASDAQ:CELL) as the electronics wholesaler saw profit fall in the fourth quarter. Brightpoint is engaged in providing supply chain solutions to the wireless industry.

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Brightpoint Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for Brightpoint Inc. fell to $15.1 million (22 cents per share) vs. $15.9 million (23 cents per share) a year earlier. This is a decline of 5.1% from the year earlier quarter.

Revenue: Rose 38.9% to $1.56 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: Brightpoint Inc. reported adjusted net income of 34 cents per share. By that measure, the company beat the mean estimate of 30 cents per share. It beat the average revenue estimate of $1.39 billion.

Quoting Management: “I am pleased that we were able to deliver strong financial results for the fourth quarter and throughout 2011,” said Vince Donargo, BrightPoint’s Chief Financial Officer and Treasurer. “During 2011 we experienced substantial growth in our distribution business. Our ROIC of 13 percent in 2011 is within our long-term targeted range of 12 to 15 percent. I am proud of our team’s ability to deliver ROTC of 43 percent in 2011, which exceeds our targeted long-term range of 35 to 40 percent. Both of these financial metrics reflect our disciplined approach to managing our balance sheet and our overall business.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 42%, with the biggest boost coming in the second quarter when revenue rose 56.6% from the year earlier quarter.

Last quarter’s profit decrease breaks a streak of three consecutive quarters of year-over-year profit increases. Net income rose 40.7% in the third quarter from the year earlier, while the figure rose more than threefold in the second quarter and more than sixfold in the first quarter.

The company has now topped analyst estimates for the last three quarters. It beat the mark by 5 cents in the third quarter and by 5 cents in the second quarter.

Looking Forward: The average estimate for the first quarter of the next fiscal year is steady at 20 cents a share. Over the past three months, the average estimate for the fiscal year has climbed from 90 cents per to share to 91 cents.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com