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Stock Price Falls After Ingram Micro's Profit Report

August 03, 2000|Bloomberg News

Shares of Ingram Micro Inc. slumped Wednesday, a day after the world's biggest distributor of computer products said second-quarter profit fell by more than a third on a 7.2% gain in revenue.

The stock fell 14%, or $2.69 a share, to $16.06 on the New York Stock Exchange. Although the company's earnings surpassed analysts' estimates, the revenue gains apparently fell short of expectations. Sales rose to $7.3 billion from $6.8 billion. "The revenues were lighter than expected," said Mark Corcoran, a D.A. Davidson & Co. analyst, who rates Ingram a "buy."

Ingram said late Tuesday that profit fell 34% to $33.2 million, or 22 cents a share, from $50.3 million, or 34 cents, a year earlier. Analysts were expecting earnings of 21 cents a share.

Corcoran said the company decided it would stop accepting unprofitable orders, which cut into revenue. However, Ingram beat estimates on its profit margins--sales as a percentage of earnings, he said.

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