Brightpoint Shares Got Destroyed: What You Need to Know
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) got destroyed today, down by as much as 19%, after the company reported earnings last night.
So what: Fourth quarter revenue totaled $1.56 billion, with earnings per share of $0.34. Both figures topped the market's expectations, which called for $1.39 billion in sales and a $0.33 per share profit.
Now what: CEO Robert Laikin said the company is well positioned to benefit from smartphone trends within the broader wireless industry, as it provides device-lifecycle services. What's really weighing on investors is that the company cut its fiscal year 2012 earnings outlook. It lowered its adjusted earnings-per-share forecast from between $1.08 to $1.20 to a new range of $1.07 to $1.17.
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