Ingram Micro Quarterly Profit Ahead of Expectations

Ingram Micro Inc., the world’s largest distributor of personal computers, reported Wednesday that fourth-quarter earnings rose 6% and slightly exceeded Wall Street’s reduced expectations.

Santa Ana-based Ingram said net income rose to $73.2 million, or 49 cents a share, from $69 million, or 47 cents, in the same period a year earlier. The company had a noncash compensation charge of $901,000 in the fourth quarter, and charges of $1.9 million a year ago. Results from the 1997 quarter reflected a noncash compensation charge. Revenue jumped 21% to $6.22 billion from $5.13 billion.

Analysts had predicted earnings of 48 cents a share, according to First Call Corp., a research firm that tracks such forecasts.

Ingram Micro had warned in December that fourth-quarter earnings would fall short of forecasts. Sales growth was slowing, the company said, because some of its biggest customers had made direct-distribution agreements with computer manufacturers. Before the warning, Ingram had been expected to earn 56 cents, First Call said.

For the year, the company earned $245.2 million, or $1.64 a share, up 27% from $193.6 million, or $1.32 a share, in 1997. Sales grew 33% to $22 billion from $16.6 billion.

The announcement came after the close of regular trading in U.S. markets. The company’s stock fell 69 cents a share to $29.50 on the New York Stock Exchange.