Ingram Micro tops Q3 sales estimate on GPU and AI infrastructure

Ingram Micro Holding Corporation (INGM) said on Oct. 29 that net sales for its fiscal third quarter, ended Sept. 26, rose 20.8% to $15.22 billion, topping the $14.11 billion consensus estimate compiled by Finnhub. The company said the quarter exceeded the high end of its guidance on all financial metrics.

Non-GAAP diluted earnings per share were 91 cents, up from 72 cents a year earlier. The company reported GAAP diluted earnings per share of 57 cents.

Here's how the company did:

• Net sales: $15.22 billion vs. $12.60 billion a year earlier
• GAAP diluted EPS: 57 cents vs. 42 cents a year earlier
• Non-GAAP diluted EPS: 91 cents vs. 72 cents a year earlier
• Adjusted income from operations: $322.0 million vs. $257.9 million a year earlier
• Adjusted EBITDA: $390.1 million vs. $342.2 million a year earlier

In its July 30 results release, the company had forecast third-quarter net sales of $13.55 billion to $13.95 billion.

Sales and margins

Advanced Solutions offerings rose 40%, Cloud-based Solutions rose 31%, Client and Endpoint Solutions rose 10% and Other services rose 35%, the company said.

Gross margin was 6.55%, compared with 6.90% a year earlier. The company said the decline reflected growth in lower-margin GPU and AI-infrastructure product sets.

North America net sales were $5.8 billion, up 31.5% from a year earlier. Asia-Pacific net sales were $4.3 billion, up 22.3%. EMEA net sales were $3.9 billion, up 7.3%. Latin America net sales were $1.1 billion, up 16.7%.

Cash flow

Cash provided by operations was $251.4 million, compared with a $146.0 million use a year earlier. Adjusted free cash flow was $249.5 million.

The company said the cash flow was its highest third-quarter result in more than 5 years. Chief Financial Officer Mike Zilis said “disciplined working capital management contributed to our strongest third-quarter cash flow performance to date.”

Fourth-quarter outlook

The company expects fourth-quarter net sales of $17.5 billion to $17.9 billion, a rise of 17.6% to 20.3% from a year earlier. Its non-GAAP diluted EPS forecast is $1.05 to $1.15, up from $0.96 in the prior fiscal fourth quarter. The quarter has 14 weeks, against 13 a year earlier.

The company also reaffirmed its multi-year framework from its September Capital Markets Day. It targets net sales compound annual growth rate, or CAGR, of about 4% to 6% and non-GAAP net income CAGR of about 11% to 13% for fiscal 2026 to 2029.

Chief Executive Officer Paul Bay said the company believes it is “well positioned to capture the opportunities ahead.”

Dividend

The board declared a fourth-quarter cash dividend of 8.8 cents per share, up from the 8.6 cents paid in the third quarter. The company said the dividend is payable Nov. 23 to stockholders of record as of Nov. 9.