Latest news with #INGM
Yahoo
5 days ago
- Business
- Yahoo
Ingram Micro (NYSE:INGM) Exceeds Q2 Expectations
IT distribution giant Ingram Micro (NYSE:INGM) reported revenue ahead of Wall Street's expectations in Q2 CY2025, with sales up 10.9% year on year to $12.79 billion. On the other hand, next quarter's revenue guidance of $12.13 billion was less impressive, coming in 1.1% below analysts' estimates. Its GAAP profit of $0.16 per share was 60.3% below analysts' consensus estimates. Is now the time to buy Ingram Micro? Find out in our full research report. Ingram Micro (INGM) Q2 CY2025 Highlights: Revenue: $12.79 billion vs analyst estimates of $12.02 billion (10.9% year-on-year growth, 6.4% beat) EPS (GAAP): $0.16 vs analyst expectations of $0.40 (60.3% miss) Adjusted EBITDA: $293.9 million vs analyst estimates of $296.7 million (2.3% margin, 0.9% miss) Revenue Guidance for Q3 CY2025 is $12.13 billion at the midpoint, below analyst estimates of $12.26 billion Operating Margin: 1.1%, in line with the same quarter last year Free Cash Flow was -$333.2 million, down from $368.1 million in the same quarter last year Market Capitalization: $4.43 billion Company Overview Operating as the crucial link in the global technology supply chain with a presence in 57 countries, Ingram Micro (NYSE:INGM) is a global technology distributor that connects manufacturers with resellers, providing hardware, software, cloud services, and logistics expertise. Revenue Growth A company's long-term performance is an indicator of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. With $50.18 billion in revenue over the past 12 months, Ingram Micro is a behemoth in the business services sector and benefits from economies of scale, giving it an edge in distribution. This also enables it to gain more leverage on its fixed costs than smaller competitors and the flexibility to offer lower prices. However, its scale is a double-edged sword because finding new avenues for growth becomes difficult when you already have a substantial market presence. To expand meaningfully, Ingram Micro likely needs to tweak its prices, innovate with new offerings, or enter new markets. As you can see below, Ingram Micro's 2% annualized revenue growth over the last five years was sluggish. This shows it failed to generate demand in any major way and is a rough starting point for our analysis. We at StockStory place the most emphasis on long-term growth, but within business services, a half-decade historical view may miss recent innovations or disruptive industry trends. Ingram Micro's annualized revenue growth of 2.1% over the last two years aligns with its five-year trend, suggesting its demand was consistently weak. This quarter, Ingram Micro reported year-on-year revenue growth of 10.9%, and its $12.79 billion of revenue exceeded Wall Street's estimates by 6.4%. Company management is currently guiding for a 3.1% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 1.5% over the next 12 months, similar to its two-year rate. This projection is underwhelming and suggests its newer products and services will not accelerate its top-line performance yet. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Operating Margin Operating margin is a key measure of profitability. Think of it as net income - the bottom line - excluding the impact of taxes and interest on debt, which are less connected to business fundamentals. Ingram Micro's operating margin might fluctuated slightly over the last 12 months but has remained more or less the same, averaging 1.8% over the last five years. This profitability was inadequate for a business services business and caused by its suboptimal cost structure. Analyzing the trend in its profitability, Ingram Micro's operating margin might fluctuated slightly but has generally stayed the same over the last five years. This raises questions about the company's expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. This quarter, Ingram Micro generated an operating margin profit margin of 1.1%, in line with the same quarter last year. This indicates the company's overall cost structure has been relatively stable. Cash Is King Although earnings are undoubtedly valuable for assessing company performance, we believe cash is king because you can't use accounting profits to pay the bills. Ingram Micro broke even from a free cash flow perspective over the last five years, giving the company limited opportunities to return capital to shareholders. Taking a step back, we can see that Ingram Micro's margin dropped by 2.9 percentage points during that time. Almost any movement in the wrong direction is undesirable because of its already low cash conversion. If the trend continues, it could signal it's becoming a more capital-intensive business. Ingram Micro burned through $333.2 million of cash in Q2, equivalent to a negative 2.6% margin. The company's cash flow turned negative after being positive in the same quarter last year, suggesting its historical struggles have dragged on. Key Takeaways from Ingram Micro's Q2 Results We liked that Ingram Micro beat analysts' revenue expectations this quarter. On the other hand, its EPS missed and its revenue guidance for next quarter fell slightly short of Wall Street's estimates. Overall, this was a weaker quarter. The stock remained flat at $18.88 immediately following the results. Is Ingram Micro an attractive investment opportunity right now? If you're making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it's free.
Associated Press
06-07-2025
- Business
- Associated Press
Ingram Micro Issues Statement Regarding Cybersecurity Incident
IRVINE, Calif.--(BUSINESS WIRE)--Jul 5, 2025-- Ingram Micro Holding Corporation (NYSE: INGM) ('Ingram Micro' or the 'Company') today issued the following statement with respect to an ongoing system outage: Ingram Micro recently identified ransomware on certain of its internal systems. Promptly after learning of the issue, the Company took steps to secure the relevant environment, including proactively taking certain systems offline and implementing other mitigation measures. The Company also launched an investigation with the assistance of leading cybersecurity experts and notified law enforcement. Ingram Micro is working diligently to restore the affected systems so that it can process and ship orders, and the Company apologizes for any disruption this issue is causing its customers, vendor partners, and others. About Ingram Micro Ingram Micro (NYSE: INGM) is a leading technology company for the global information technology ecosystem. With the ability to reach nearly 90% of the global population, we play a vital role in the worldwide IT sales channel, bringing products and services from technology manufacturers and cloud providers to a highly diversified base of business-to-business technology experts. Through Ingram Micro Xvantage™, our AI-powered digital platform, we offer what we believe to be the industry's first comprehensive business-to-consumer-like experience, integrating hardware and cloud subscriptions, personalized recommendations, instant pricing, order tracking, and billing automation. We also provide a broad range of technology services, including financing, specialized marketing, and lifecycle management, as well as technical pre- and post-sales professional support. Learn more at . Forward-Looking Statements This release contains 'forward-looking statements' within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. You can identify forward-looking statements because they contain words such as 'believes,' 'expects,' 'may,' 'will,' 'should,' 'seeks,' 'intends,' 'plans,' 'estimates,' or 'anticipates,' or similar expressions which concern our strategy, plans, projections, or intentions. By their nature, forward-looking statements: speak only as of the date they are made; are not statements of historical fact or guarantees of future performance; and are subject to risks, uncertainties, assumptions or changes in circumstances that are difficult to predict or quantify. Our expectations, beliefs, and projections are expressed in good faith, and we believe there is a reasonable basis for them. However, there can be no assurance that management's expectations, beliefs, and projections will result or be achieved, and actual results may vary materially from what is expressed in or indicated by the forward-looking statements. Certain important factors that could cause actual results to differ, possibly materially, from our expectations, beliefs, and projections reflected in such forward-looking statements can be found in the 'Risk Factors' and 'Cautionary Note Regarding Forward-Looking Statements' sections included in the Company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments, or otherwise, except as may be required by any applicable securities laws. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. View source version on CONTACT: Investor Relations Willa McManmon [email protected] Lisa Zwick [email protected] KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA INDUSTRY KEYWORD: DATA MANAGEMENT SECURITY TECHNOLOGY SOFTWARE ARTIFICIAL INTELLIGENCE INTERNET SOURCE: Ingram Micro Holding Corporation Copyright Business Wire 2025. PUB: 07/05/2025 10:07 PM/DISC: 07/05/2025 10:07 PM
Yahoo
11-06-2025
- Business
- Yahoo
INGM Q1 Earnings Call: Automation and Platform Investments Drive Growth Amid Margin Pressure
IT distribution giant Ingram Micro (NYSE:INGM) reported Q1 CY2025 results exceeding the market's revenue expectations , with sales up 8.3% year on year to $12.28 billion. Guidance for next quarter's revenue was better than expected at $11.97 billion at the midpoint, 1.4% above analysts' estimates. Its GAAP profit of $0.29 per share was 26.9% below analysts' consensus estimates. Is now the time to buy INGM? Find out in our full research report (it's free). Revenue: $12.28 billion vs analyst estimates of $11.61 billion (8.3% year-on-year growth, 5.8% beat) EPS (GAAP): $0.29 vs analyst expectations of $0.40 (26.9% miss) Adjusted EBITDA: $290.8 million vs analyst estimates of $279.2 million (2.4% margin, 4.1% beat) Revenue Guidance for Q2 CY2025 is $11.97 billion at the midpoint, above analyst estimates of $11.8 billion Operating Margin: 1.6%, in line with the same quarter last year Market Capitalization: $4.7 billion Ingram Micro's first quarter performance was largely shaped by the continued momentum in its client and endpoint solutions, as well as growing contributions from advanced solutions and cloud businesses. CEO Paul Bay highlighted that both North America and Asia Pacific delivered double-digit sales growth, with the company's xVantage platform playing a key role in improving operational efficiency and customer engagement. Management discussed improved productivity in go-to-market teams and pointed to successful reactivation of dormant customers through digital initiatives. CFO Michael Zilis noted that automation and cost actions taken over the past two years helped leverage operating expenses, even as gross margins faced headwinds due to a greater mix of lower-margin product categories and regional shifts. Looking ahead, management stated that macroeconomic and trade uncertainties, especially around tariffs, are expected to impact both demand and customer buying behavior in the coming quarters. CFO Michael Zilis emphasized, 'Our Q2 guidance reflects the potential impact of tariffs and the macro environment as a prudent reflection of what we see today.' The company expects continued growth in advanced solutions and cloud, but anticipates the mix will remain weighted toward lower-margin large enterprise customers. Management also stressed the importance of ongoing investments in digital platforms and automation, which they believe will support margin improvement over time. The outlook remains cautious, with the team closely monitoring vendor pricing dynamics and customer responses to changing market conditions. Ingram Micro's leadership attributed first quarter gains to the success of its xVantage digital platform and increased automation, while acknowledging margin pressures from sales mix and regional trends. xVantage platform expansion: Management reported that xVantage, now live in 20 countries, enabled more than triple the self-service orders compared to the prior year, improved customer engagement, and reactivated thousands of dormant customers. The platform's AI-driven features, such as the AIDA assistant, contributed to both revenue uplift and go-to-market team productivity. Client and endpoint solutions momentum: Nearly 15% growth in client and endpoint solutions, primarily driven by desktop, notebook, and mobility device sales, was a key revenue driver. However, this growth also pressured gross margins, as these products typically have lower profitability than advanced solutions and cloud offerings. Advanced solutions and cloud growth: Both segments showed year-over-year growth, with cloud representing only about 1% of net sales but contributing nearly 15% of total gross profit. Management sees this as a foundation for future margin expansion as these higher-margin businesses scale. Regional performance dynamics: While Asia Pacific led with over 20% sales growth, gains were concentrated in lower-margin, highly competitive markets. North America returned to double-digit growth, but large corporate and enterprise customers—who tend to generate lower margins—drove most of the increase, while SMB sales remained subdued. Cost leverage and operating expenses: Cost actions and automation initiatives reduced operating expenses as a percentage of sales. However, the overall margin profile remained under pressure due to the sales mix and higher inventory investments in anticipation of tariffs. Management's outlook for the coming quarters centers on navigating tariff uncertainty, shifting customer mix, and scaling digital initiatives to support growth and margin improvement. Tariff and macroeconomic headwinds: The leadership team warned that persistent volatility around tariffs could dampen demand, particularly among SMB customers who are more sensitive to inflation and price uncertainty. Ingram Micro's ability to pass through most tariff-related costs helps protect margins, but demand may still be affected if customers delay purchases. Shift toward higher-margin business: While large enterprise sales continue to dominate, management aims to grow advanced solutions and cloud as a proportion of total revenue. These segments are expected to support future margin expansion, but near-term growth remains weighted toward lower-margin products and geographies. Investments in automation and digital platforms: Ongoing investment in xVantage and AI-driven processes is expected to drive greater operational efficiency and lower operating expenses over time. Management believes this will help offset some of the margin headwinds from product and regional mix, as well as support improved customer experience and retention. In the upcoming quarters, the StockStory team will monitor (1) the pace of xVantage platform adoption and its effect on customer engagement and operational efficiency, (2) the impact of tariffs and macroeconomic conditions on demand—particularly among SMBs, and (3) the ability of advanced solutions and cloud to grow as a share of revenue and support margin improvement. Trends in inventory management and working capital efficiency will also serve as important indicators of strategic execution. Ingram Micro currently trades at a forward P/E ratio of 6.6×. Should you double down or take your chips? Find out in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
Yahoo
02-06-2025
- Business
- Yahoo
Ingram Micro (INGM): Buy, Sell, or Hold Post Q1 Earnings?
Although the S&P 500 is down 2.4% over the past six months, Ingram Micro's stock price has fallen further to $19.13, losing shareholders 17.9% of their capital. This was partly due to its softer quarterly results and might have investors contemplating their next move. Is there a buying opportunity in Ingram Micro, or does it present a risk to your portfolio? Get the full breakdown from our expert analysts, it's free. Even with the cheaper entry price, we're swiping left on Ingram Micro for now. Here are three reasons why INGM doesn't excite us and a stock we'd rather own. Examining a company's long-term performance can provide clues about its quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Regrettably, Ingram Micro's sales grew at a sluggish 1.3% compounded annual growth rate over the last five years. This was below our standards. Analyzing the change in earnings per share (EPS) shows whether a company's incremental sales were profitable – for example, revenue could be inflated through excessive spending on advertising and promotions. Ingram Micro's full-year EPS dropped 20.5%, or 9.8% annually, over the last two years. We tend to steer our readers away from companies with falling revenue and EPS, where diminishing earnings could imply changing secular trends and preferences. If the tide turns unexpectedly, Ingram Micro's low margin of safety could leave its stock price susceptible to large downswings. If you've followed StockStory for a while, you know we emphasize free cash flow. Why, you ask? We believe that in the end, cash is king, and you can't use accounting profits to pay the bills. Ingram Micro broke even from a free cash flow perspective over the last five years, giving the company limited opportunities to return capital to shareholders. Ingram Micro falls short of our quality standards. Following the recent decline, the stock trades at 6.3× forward P/E (or $19.13 per share). While this valuation is optically cheap, the potential downside is huge given its shaky fundamentals. There are better investments elsewhere. We'd recommend looking at one of Charlie Munger's all-time favorite businesses. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
Yahoo
15-05-2025
- Business
- Yahoo
Ingram Micro Holding Corporation (INGM): Among the Most Promising New Technology Stocks According to Analysts
We recently compiled a list of the . In this article, we are going to take a look at where Ingram Micro Holding Corporation (NYSE:INGM) stands against the other promising new technology stocks. The stock market entered 2025 with much optimism, taking confidence from last year's performance. Similar to the stock market, the US IPO market also entered 2025 well-positioned for a promising year. However, the uncertainty regarding the tariffs has led to a lot of volatility in both the stock market and the IPO market. On March 27, White & Case released its insights on the US IPO market. The report highlighted that the US IPO showed steady gains due to stabilized gains and falling interest rates in the fourth quarter of 2024. Last year marked the second consecutive year of positive growth in US IPO proceeds, including the SPACs (Special Purpose Acquisition Company), as the proceeds reached $41.36 billion after growing 75% year-over-year. While the growth was impressive, it was still well below the pre-pandemic levels. In terms of the IPO counts, the number of IPOs grew from 154 in 2023 to 231 in 2024. The report also noted that the United States continued to lead the global IPO market by posting more than twice the level of proceeds as India, which is the second-largest IPO market by proceeds. The progress from the last year was carried on into 2025 as figures from the January 2025 IPO were favorable compared to the same month last year. In January, the US saw 29 IPOs, up from 17, with deal values growing from $3.45 billion to $5.1 billion. Moreover, the pipeline figures showed that there were 57 pending IPOs in March 2025. The United States market is anticipating more technology and artificial intelligence companies to go IPO during the year. This is due to the massive joint investment through Stargate's $100 billion reserve. The report acknowledged the uncertainty and difficulty that new companies might be facing due to the tariffs. However, the overall economic policies of the administration are viewed as capital-friendly, thereby paving the way for more IPOs to be filed this year. To curate the list of 11 most promising new technology stocks according to analysts, we used the Finviz stock screener and CNN. Using the screener, we aggregated a list of technology stocks that have IPOed within the last 3 years. Next, we sourced the upside potential based on Wall Street analysts' price target estimates for each stock from CNN and ranked the stocks in ascending order of this indicator. We have also added the hedge fund sentiment around each stock from Insider Monkey's Q4 2024 database. Please note that the data was recorded on May 13, 2025. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A close up view of a person's hands typing on a computer keyboard, emphasizing internet-based information technology services. Ingram Micro Holding Corporation (NYSE:INGM) is an international distributor of information technology products and services. Its offerings include cloud-based services, client and end-point solutions, and traditional hardware and software distribution. The company has operations in North America, the Middle East, Europe, Latin America, and Asia-Pacific. On March 25, analyst Surinder Thind from Jefferies reiterated a Buy rating on the stock with a price target of $24. The analyst noted that although the earnings per share estimations have declined and the product margins are lower. However, the company's valuations remain attractive. Ingram Micro Holding Corporation (NYSE:INGM) released its fiscal first quarter results for 2025 on May 8. The company grew its revenue by 8.3% to reach $12.28 billion. This was above the higher end of managements guidance. Moreover, the gross profit also came in close to the upper end of its guidance at $828.8 million. Looking ahead, management expects second quarter revenue to be between $11.77 billion to $12.17 billion. Ingram Micro Holding Corporation (NYSE:INGM) is one of the most promising new technology stocks according to analysts. Middle Coast Investing stated the following regarding Ingram Micro Holding Corporation (NYSE:INGM) in its Q4 2024 investor letter: 'Ingram Micro Holding Corporation (NYSE:INGM) is a technology distributor of both hardware software. It is the biggest competitor in size to TD Synnex (SNX), which we also own. Ingram just went public again after being bought out and then resold a few years ago. It has the baggage of private equity ownership, which will put pressure on shares in the coming years. The company's revenue has not been growing, though I think that's an industry level issue. It has scale and is a leader in the industry, and trades meaningfully cheaper than its peers. We again have a starter position, but I don't think that discount should persist (and in owning SNX, we believe there is value in the sector as a whole).' Overall INGM ranks 7th on our list of the most promising new technology stocks according to analysts. While we acknowledge the potential of INGM as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than INGM but that trades at less than 5 times its earnings, check out our report about this . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
