Brightpoint's earnings surge on smartphone sales

Back to TopCommentsE-mailPrintBookmark and Share

Brightpoint Inc., a distributor of wireless phones, said Thursday that its earnings increased more than sixfold as the growing demand for smartphones meant that more higher-priced devices passed through Brightpoint's facilities.

Brightpoint's business is mainly reselling wireless phones. About 90 percent of the company's revenue has typically come from its distribution business, and Brightpoint has said in regulatory filings that it has 25,000 "business-to-business" customers worldwide, which refer to companies that sell to other companies, instead of directly to consumers.

The company said it handled more than 27 million wireless devices in the first quarter, versus 22.5 million a year ago.

The Indianapolis-based company reported after the market closed that its first-quarter net income was $9.3 million, or 13 cents per share, versus $1.4 million, or 2 cents per share, a year ago.

Excluding one-time expenses, the company would have earned 20 cents per share. Revenue rose 40 percent, to $1.1 billion, from $795.2 million a year ago.

The results topped the average estimates of analysts, who expected adjusted earnings of 19 cents per share on revenue of $982.1 million, according to FactSet.

Brightpoint shares surged Friday morning to as high as $11.20 each before settling back to $10.51 at midday, up 2.3 percent. 

For the full year, the company expects to handle between 111 million and 114 million wireless devices, an increase of up to 15 percent compared to 2010. It has forecast earnings of 90 cents per share to $1.05 per share, excluding items. Analysts are expecting $1 per share, on that basis.

Brightpoint saw its shares downgraded in March on the news that AT&T would acquire T-Mobile, which is one of the company's major logistics customers. Logistics accounts for about 10 percent of Brightpoint's revenue, but it's a high-margin business.

At least one analyst shrugged off the looming threat. Oppenheimer funds responded to Brightpoint's quarterly earnings announcement Friday by maintaining its "outperform" rating. The analysts acknowledged that lower margins and the impact of the AT&T acquisition of T-mobile could "cap" share price in the near term.

"However, longer term we see multiple drivers supporting growth," the analysts concluded in a research note issued Friday. Those trends include consumers buying higher-priced smartphones, momentum in Europe and Brightpoint's earlier acquisition of Touchstone, which handles used devices.


Post a comment to this story

We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
You are legally responsible for what you post and your anonymity is not guaranteed.
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
Subscribe to IBJ
  1. I am not by any means judging whether this is a good or bad project. It's pretty simple, the developers are not showing a hardship or need for this economic incentive. It is a vacant field, the easiest for development, and the developer already has the money to invest $26 million for construction. If they can afford that, they can afford to pay property taxes just like the rest of the residents do. As well, an average of $15/hour is an absolute joke in terms of economic development. Get in high paying jobs and maybe there's a different story. But that's the problem with this ask, it is speculative and users are just not known.

  2. Shouldn't this be a museum

  3. I don't have a problem with higher taxes, since it is obvious that our city is not adequately funded. And Ballard doesn't want to admit it, but he has increased taxes indirectly by 1) selling assets and spending the money, 2) letting now private entities increase user fees which were previously capped, 3) by spending reserves, and 4) by heavy dependence on TIFs. At the end, these are all indirect tax increases since someone will eventually have to pay for them. It's mathematics. You put property tax caps ("tax cut"), but you don't cut expenditures (justifiably so), so you increase taxes indirectly.

  4. Marijuana is the safest natural drug grown. Addiction is never physical. Marijuana health benefits are far more reaching then synthesized drugs. Abbott, Lilly, and the thousands of others create poisons and label them as medication. There is no current manufactured drug on the market that does not pose immediate and long term threat to the human anatomy. Certainly the potency of marijuana has increased by hybrids and growing techniques. However, Alcohol has been proven to destroy more families, relationships, cause more deaths and injuries in addition to the damage done to the body. Many confrontations such as domestic violence and other crimes can be attributed to alcohol. The criminal activities and injustices that surround marijuana exists because it is illegal in much of the world. If legalized throughout the world you would see a dramatic decrease in such activities and a savings to many countries for legal prosecutions, incarceration etc in regards to marijuana. It indeed can create wealth for the government by collecting taxes, creating jobs, etc.... I personally do not partake. I do hope it is legalized throughout the world.

  5. Build the resevoir. If built this will provide jobs and a reason to visit Anderson. The city needs to do something to differentiate itself from other cities in the area. Kudos to people with vision that are backing this project.