What Happened?
Shares of IT distribution giant Ingram Micro (NYSE: INGM) jumped 5.2% in the afternoon session after the company reported mixed third-quarter results but provided an optimistic revenue forecast for the upcoming quarter.
The company's sales for the quarter grew 7.2% year-over-year to $12.6 billion, surpassing Wall Street's expectations of $12.24 billion. Furthermore, Ingram Micro issued strong revenue guidance for its fourth quarter, projecting sales of around $14.18 billion at the midpoint, which was well ahead of the $13.68 billion analysts had anticipated. While the revenue figures were strong, the company's GAAP earnings per share of $0.42 fell just short of the consensus estimate of $0.44. However, adjusted EBITDA, a measure of a company's operating performance, came in at $342.2 million, beating expectations by 6.9%. Investors appeared to focus on the strong top-line performance and encouraging outlook, overlooking the slight earnings miss.
After the initial pop the shares cooled down to $23.02, up 4.4% from previous close.
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What Is The Market Telling Us
Ingram Micro’s shares are somewhat volatile and have had 12 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 23 days ago when the stock gained 3.7% on the news that confidence in the artificial intelligence market was renewed, pushing both the S&P 500 and Nasdaq to new all-time intraday highs. The rebound was led by chipmaker Nvidia, whose shares rose nearly 2% after its CEO confirmed that demand for computing has "gone up substantially" in recent months. These comments helped reassure the market that the AI boom is supported by genuine demand, calming fears that were sparked a day earlier by a report questioning the profitability of Oracle's cloud business. The rally was strong enough to put the information technology sector on pace for a fresh closing high. This upward momentum occurred despite potential headwinds from an ongoing U.S. government shutdown, which entered its second week.
Ingram Micro is up 16.3% since the beginning of the year, and at $23.02 per share, it is trading close to its 52-week high of $24.67 from February 2025. Investors who bought $1,000 worth of Ingram Micro’s shares at the IPO in October 2024 would now be looking at an investment worth $935.77.
P.S. In tech investing, "Gorillas" are the rare companies that dominate their markets—like Microsoft and Apple did decades ago. Today, the next Gorilla is emerging in AI-powered enterprise software. Access the ticker here in our special report.
