Ingram Micro Stock Gains After Q4 Results Edge Past Expectations: Share Buyback Announced, But Retail Stays Bearish

Shares of Ingram Micro (INGM) gained in Tuesday’s regular trade, rising more than 1% and extended their run with gains of nearly 2% in the after-market session after the company’s fourth-quarter results beat Wall Street expectations.

Ingram Micro reported earnings per share (EPS) of $0.92, narrowly edging past expectations of $0.91. Its revenue stood at $13.34 billion, ahead of consensus estimates of $13.21 billion.

Like other companies, Ingram Micro, too, witnessed a rise in revenue due to cloud demand.

“We are pleased with our Q4 performance where we saw a return to year-over-year revenue growth, driven by strong performance in Cloud and in Client and Endpoint Solutions,” said Paul Bay, Ingram Micro’s CEO.

However, the company’s gross margins came under pressure during Q4, which stood at 7.01%, compared to 7.52% in the year-ago period. It said this decline was a result of a shift towards lower-margin clients and regions, in addition to large enterprises, which typically yield lower margins.

Through fiscal year 2024, Ingram Micro repaid $483 million of its debt and posted a free cash flow of $443.3 million.

The company also authorized a share buyback plan of $75 million and declared a dividend of $0.07.

However, Ingram Micro’s Q1 EPS was below expectations – the company projected an EPS between $0.51 and $0.61, lower than the estimated $0.69. It guided for revenue in the range of $11.43 billion and $11.83 billion, while estimates peg it at $11.64 billion.

Retail sentiment on Stocktwits was not as upbeat, though, hovering in the ‘bearish’ territory at the time of writing.

Ingram Micro’s stock has gained over 8% year-to-date, but its one-year performance shows a decline of 14.7%.

Data from FinChat shows an average price target of $27.69 for the Ingram Micro stock, implying an upside of 32% from Tuesday’s closing price.

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