Why Brightpoint Is Having a Dark Day

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Brightpoint (NAS: CELL) are having a rather dark day today, down by as much as 13% after the wireless company reported first-quarter earnings.

So what: Revenue was $1.37 billion, which was a 23% jump compared to last year, while non-GAAP earnings per share added up to $0.16. Despite the fact that revenue exceeded expectations, the bottom line came in $0.05 short of the $0.21 per-share profit that the market was looking for.


Now what: Unfortunately, Brightpoint had to lower full-year guidance due to a challenging environment. It had previously predicted a full-year non-GAAP profit of $1.07 to $1.13 per share, but is now toning that down to a new range of $0.98 to $1.04 per share. CEO Robert Laikin said Brightpoint's customers and vendor partners saw competitive and economic pressures, which hurt the quarter's results.

Interested in more info on Brightpoint? Add it to your watchlist byclicking here.

At the time this article was published Fool contributorEvan Niuholds no position in any company mentioned.Click hereto see his holdings and a short bio. The Motley Fool has adisclosure policy. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days.

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