Ingram Micro (IM) Tops Q3 EPS by 4c

Ingram Micro (NYSE: IM) reported Q3 EPS of $0.67, $0.04 better than the analyst estimate of $0.63. Revenue for the quarter came in at $10.52 billion versus the consensus estimate of $10.73 billion.

Ingram Micro sees Q4 2015 EPS of $1.00-$1.07, versus the consensus of $1.07.

"We had a great quarter, reflecting continued execution on our strategy," said Alain Monie, Ingram Micro CEO. "We drove strong operating leverage while continuing to build our capabilities in key strategic areas such as advanced solutions, lifecycle services, commerce and fulfillment solutions and cloud. Our teams remained focused on generating strong returns on capital, which resulted in expanded margins, with non-GAAP operating margin reaching the highest level for a third quarter in more than a decade, a 21% increase in non-GAAP earnings per share on a currency neutral basis versus last year and $340 million in operating cash flow for the quarter. Our focus on structurally improving our cash conversion cycle is yielding results and we now expect to generate more than $1 billion in operating cash flow for the full year, even as we deploy capital to support revenue growth in our seasonally strongest fourth quarter.

"Consistent with our strategy to expand in higher value and services areas," Monie said, "we recently announced our intent to acquire the commerce solutions business of DOCDATA N.V. and value-add IT solutions provider Grupo ACAO. We expect to leverage our global infrastructure and world-class partnerships to accelerate growth and profitability in these businesses and, upon close, each is expected to immediately contribute to further margin expansion and non-GAAP earnings.

"In addition to strong execution across the business," Monie continued, "this quarter we continued to deliver on our commitment to return capital to shareholders, paying our first ever quarterly dividend and repurchasing more than $160 million in stock during the third quarter, bringing total repurchases to $206 million since we resumed our program this May."

For earnings history and earnings-related data on Ingram Micro (IM) click here.

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