Breaking News
FONT-SIZE Plus   Neg
Share SHARE

Brightpoint Shares Fall On Revised 2012 Outlook - Update

Shares of Brightpoint, Inc. (CELL: Quote) fell more than 5 percent in extended trade on Tuesday after the provider of supply chain solutions to the wireless industry lowered the high end of its fiscal year 2012 earnings forecast range.

The company cited a customer transition from its subsidiary and a higher than normal seasonal decline in industry units as reasons for the revised outlook.

Brightpoint said that its subsidiary, Brightpoint North America L.P., was informed that one of its logistic services customers will begin transitioning to a different service provider in April, 2012. The transition is expected to continue through the end of 2012.

BrightPoint Americas handled 6.8 million wireless devices in 2011 and 6.4 million wireless devices in 2010 on behalf of this customer. The company expects the transition will result in a negative impact to adjusted earnings per share of about $0.02 to $0.06 in 2012.

BrightPoint said it continues to expect a higher than normal seasonal decline in industry units in the first quarter of 2012. The company projects units to decline 15 percent to 20 percent compared to the preceding fourth quarter of 2011.

Due to the customer transition and a higher than normal seasonal decline in industry units in the first quarter of 2012, BrightPoint updated its previously disclosed fiscal 2012 expectations.

For fiscal year 2012, BrightPoint currently forecasts income from continuing operations per share of $0.66 to $0.72 and adjusted income from continuing operations per share of $1.07 to $1.13. Earlier, the company forecast earnings per share of $0.66 to $0.76 per share and adjusted earnings per share of $1.07 to $1.17 for the year. Analysts polled by Thomson Reuters expect the company to report earnings of $1.11 per share for fiscal 2012. Analysts' estimates typically exclude special items.

In early February, Brightpoint reported a decline in profit for the fourth quarter despite higher revenues. The company's net income for the quarter was $15.07 million, or $0.22 per share, down from $15.87 million, or $0.23 per share in the year-ago period. Revenue surged 39 percent from the prior-year period to $1.56 billion.

CELL closed Tuesday's trading at $10.00, down $0.16 or 1.57 percent on a volume of. In extended trade, the stock further declined $0.54 or 5.40 percent to $9.46.

Register
To receive FREE breaking news email alerts for Brightpoint Inc and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Stocks saw some volatility following the release of the Federal Reserve's monetary policy announcement on Wednesday but managed to end the day modestly higher. With the upward move, the Dow reached a new record closing high. President Barack Obama sought to emphasize in remarks on Wednesday that the American forces being deployed as part of the fight against the terrorist group ISIS will not have a combat mission. Republican Joni Ernst has moved into the lead in the potentially crucial Iowa Senate race, according to the results of a Quinnipiac University poll released on Wednesday. The poll found that 50 percent of likely Iowa voters would support Ernst if the election were held today, while 44 percent would vote for Democratic Rep. Bruce Braley.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.