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
General Mills has announced another expansion to its flour recall in response to four new illnesses that were linked to a possible E. Coli outbreak. The latest recall covers several varieties of Signature Kitchens and Gold Medal flour produced through February 10. General Mill had first announced... Google maps will be more easy to use with its latest update. Traffic information will be more visible with its new cleaner look. Starbucks baristas are now free to express their personal style at work under a new dress code announced by the world's largest specialty coffee retailer. Instead of the familiar solid black, white and khaki clothing underneath their iconic green aprons, baristas can now come for work in a range of colors and outfits that reflect their own personal tastes.
comments powered by Disqus
Follow RTT