PLAINFIELD, Ind.-Investors sent shares of Brightpoint Inc. skyward after the company reported a 33-percent increase in fourth-quarter sales.
The mobile-phone distributor reported quarterly net income of $8.9 million, or 21 cents per share, up from $7.5 million, or 18 cents per share, in the year-ago period. Revenue for the quarter totaled $631 million, up from $474 million in 2004, and the company reported a $3 million charge related to the sale of the Brightpoint’s operations in France.
Brightpoint’s revenue for the year was $2.1 billion, up 21 percent from 2004. The company handled 42.1 million devices in 2005, marking a 57-percent increase in logistic services and distribution.
“I believe that 2006 has the potential, given all the positive recent market factors, to be a record year for Brightpoint in the number of wireless devices handled,” said Robert Laikin, Brightpoint’s chief executive officer. “I currently believe that the range of handsets sold in the global wireless industry will be approximately 900 million to 1 billion.”
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The figures topped Wall Street estimates, and Brightpoint shares shot up $3.73 to $25.07 per share in morning trading on the Nasdaq.
CIBC World Markets reiterated its “sector outperform” rating on the company, raising its 2006 revenue projections from $2.3 billion and 77 cents per share to $2.4 billion and 88 cents per share.
“Solid revenue growth of 11.4 percent in 2006 and 8.4 percent in 2007 is expected to drive strong earnings growth,” the firm wrote.
Brightpoint is a client of CIBC, and the firm has managed or co-managed sales of Brightpoint shares in the last year.