PLAINFIELD, Ind.—Brightpoint Inc. reported that its net income more than tripled during the first quarter from $2.9 million last year to $8.9 million this year.
The company’s strong profit growth, however, did not excite investors, who sent the company’s stock down 2.9 percent to close at $28.81 Tuesday. The company also announced plans for a six-to-five stock split at the end of this month.
Brightpoint’s revenues came in at $564.6 million, a healthy 21-percent increase from revenues of $465.1 million last year. The company’s revenue results beat analyst forecasts of $561.9 million.
Brightpoint noted it handled 12.5 million wireless devices during the quarter, which represents a 65-percent increase over last year’s first-quarter figures. The increase included a 91-percent increase in fee-based logistic services unit volumes and a 14-percent increase in distribution unit volumes, said the company.
“Overall, Brightpoint’s results are solid and ahead of expectations with management remaining bullish on the company’s prospects for growth in excess of the overall market,” wrote Ittai Kidron of CIBC World Markets in a note to investors. CIBC makes a market in Brightpoint securities. “We feel comfortable with the company positioning and our Sector Outperform rating and are once again raising our earnings estimates.”
