Ingram Micro Shares Drop After Cutting 3Q Earnings Guidance

The Santa Ana, Calif.-based distributor said that it expects to earn 32 cents to 34 cents per share, before non-recurring charges. By comparison, Wall Street analysts had been expecting earnings of 41 cents per share.

Shares of Ingram Micro were trading at $17.18, down $1.54 or 8.2 percent. By comparison, the Dow Jones and Nasdaq indices were down 0.6 percent and 0.8 percent, respectively, Tuesday morning.

Ingram Micro said it still expected earnings of about $8.9 billion, in line with analysts' forecast of $8.91 billion for the quarter that ended Oct. 1.

Ingram Micro cut its earnings forecast because its market share recovery in Australia following a new ERP implementation is slower than expected and because demand in Europe, particularly for consumer products, was soft and caused a more competitive pricing environment.

"Demand in our key customer segment, which serves small and medium businesses, remained relatively solid in most parts of the world," said Greg Spierkel in a statement. "Most areas of our business are performing well, outside of the recovery efforts in Australia and the effects of the European economy."

Ingram Micro will release its full third-quarter financial results on Oct. 27.