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
Shares of Deutsche Bank AG are gaining more than 9 percent in pre-market activity on Wednesday following media reports that the German lender is considering buying back several billion euros of its senior bonds. The recovery in the bank's share price comes after two days of falls amid a broader rout of bank stocks due to concerns over their profitability and troubled loans. Time Warner Inc. (TWX) reported a profit for the fourth-quarter of 2015 that increased 19.4% from last year. But, quarterly revenues decreased about 6% from the prior year, due to a decline at Warner Bros., partially offset by increases at Home Box Office and Turner. The company increased its regular quarterly dividend by 15% to $0.4025 per share. Breakfast and snack food giant Kellogg Co. (K) continues to make great progress with its productivity initiatives. Hence, it remains confident in meeting its long-term targets for currency-neutral comparable net sales and operating profit growth in 2016 and beyond. However, negative currency translation impact that prevailed in the last few quarters is expected to continue in the fourth quarter.
comments powered by Disqus
Follow RTT