logo
Share SHARE
FONT-SIZE Plus   Neg

Brightpoint Shares Fall On Revised 2012 Outlook - Update

Shares of Brightpoint, Inc. (CELL) 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.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Heading into a quiet week that precedes the final FOMC meeting of the year, the economic momentum remains strong. Data releases from the just concluded week makes it tough for the central bank to pass up an interest rate hike. However, will the Fed risk a backlash in a transition period on the political... AutoZone, Inc., an automotive replacement parts retailer, reported Tuesday higher profit in its first quarter with increased net sales and domestic store sales. Earnings per share topped analysts' estimates, while top line missed the view. In the pre-market activity on the NYSE, AutoZone shares were gaining 1.10 percent. The Justice Department, in the antitrust trial against the proposed Aetna- Humana Merger, argued that the merger would harm senior citizens who buy private Medicare plans. The U.S. Department of Justice stated that the merger would also harm consumers who buy plans on Affordable Care Act marketplaces, reports said. However, healthcare insurers Aetna And Humana defended their proposed merger..
comments powered by Disqus
Follow RTT