BrightPoint Inc. stock fell as much as 12 percent early Friday morning following disappointing first-quarter earnings that prompted the company to lower its 2012 financial forecast.
Shares rebounded slightly and were fetching $6.36 in late-morning trading, but nevertheless were down 9 percent from their $7 close on Thursday.
Rough conditions in the global wireless industry hurt earnings, the Indianapolis-based logistics provider reported Thursday afternoon after markets closed.
BrightPoint's net income was $3.2 million, or 5 cents per share, down significantly from $8 million, or 11 cents per share, in the year-ago quarter and from $15 million in the fourth quarter of 2011.
Revenue was $1.37 billion, up 23 percent from the same quarter a year ago, but down from the fourth quarter.
“We are reporting solid results in revenue and units handled for the first quarter of 2012," CEO Robert Laikin said in a prepared statement. “However, our customers and vendor partners faced significant competitive and economic pressures in the first quarter, which negatively impacted our profitability.”
BrightPoint handled 29.2 million mobile devices in the quarter. That was a 7-percent increase over the first quarter of 2011, but a 5-percent decrease from the fourth quarter.
BrightPoint said it expects per-share income for the year to range from 57 cents to 63 cents, which would be down from its previous forecast of 66 cents to 72 cents.
BrightPoint said it took $2.4 million in restructuring charges in the quarter, including the anticipated sale of its Reno, Nev., facility, plus severance expenses from downsizing. The company laid off an undisclosed number of people in its Americas division and had “continued consolidation and rationalization” in its Europe, Middle East and Africa and corporate divisions.
The company reported adjusted net income of 16 cents per share, which missed analyst estimates by 2 cents. However, it beat the average revenue estimate of $1.29 billion.