Core Insights - Ingram Micro (INGM) is currently viewed as a more attractive investment compared to Enpro (NPO) based on valuation metrics and earnings outlook [3][7] Valuation Metrics - INGM has a forward P/E ratio of 8.00, significantly lower than NPO's forward P/E of 30.41, indicating that INGM may be undervalued [5] - The PEG ratio for INGM is 0.89, while NPO's PEG ratio stands at 2.34, suggesting that INGM offers better value relative to its expected earnings growth [5] - INGM's P/B ratio is 1.3, compared to NPO's P/B of 3.29, further supporting the notion that INGM is a more favorable investment option [6] Analyst Outlook - INGM has a Zacks Rank of 2 (Buy), reflecting an improving earnings estimate revision activity, while NPO holds a Zacks Rank of 3 (Hold) [3][7] - The positive earnings outlook for INGM enhances its attractiveness as a value investment [7]

Core Insights - Ingram Micro reported revenue of $12.6 billion for the quarter ended September 2025, reflecting a year-over-year increase of 7.2% and a surprise of +3.67% over the Zacks Consensus Estimate of $12.16 billion [1] - The company's EPS for the quarter was $0.72, matching the EPS from the same quarter last year, with a surprise of +7.46% over the consensus estimate of $0.67 [1] Revenue Performance - Geographic revenues for Latin America reached $965.89 million, exceeding the average estimate of $893.64 million [4] - EMEA revenues were reported at $3.66 billion, surpassing the average estimate of $3.55 billion [4] - Asia-Pacific revenues amounted to $3.55 billion, exceeding the average estimate of $3.31 billion [4] - North America revenues were $4.43 billion, slightly above the average estimate of $4.4 billion [4] Stock Performance - Ingram Micro's shares have returned -0.8% over the past month, while the Zacks S&P 500 composite has increased by +3.6% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Core Insights - Ingram Micro reported quarterly earnings of $0.72 per share, exceeding the Zacks Consensus Estimate of $0.67 per share, and matching the earnings from the previous year [1] - The company achieved revenues of $12.6 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 3.67% and showing an increase from $11.76 billion year-over-year [3] Earnings Performance - The earnings surprise for the quarter was +7.46%, with the company having surpassed consensus EPS estimates in all four of the last quarters [2] - Ingram Micro's shares have increased approximately 13.4% since the beginning of the year, compared to a 17.2% gain for the S&P 500 [4] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.87 on revenues of $13.53 billion, and for the current fiscal year, it is $2.77 on revenues of $50.76 billion [8] - The Zacks Rank for Ingram Micro is currently 3 (Hold), indicating expected performance in line with the market in the near future [7] Industry Context - The Technology Services industry, to which Ingram Micro belongs, is currently in the top 35% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [9] - Priority Technology, another company in the same industry, is expected to report quarterly earnings of $0.30 per share, reflecting a year-over-year change of +328.6% [10]

Financial Data and Key Metrics Changes - The company reported revenues of $12.6 billion for Q3 2025, representing a year-over-year increase of 7.2% and exceeding the high end of guidance [4][15] - Non-GAAP diluted earnings per share (EPS) was $0.72, at the high end of guidance, despite a minor impact from a ransomware incident [4][21] - Gross profit for Q3 was $870 million, up from $845 million year-over-year, with gross margins showing a sequential improvement of 34 basis points [19][21] - Adjusted EBITDA for the quarter was $342 million, reflecting a 3% increase in U.S. dollars [21] Business Line Data and Key Metrics Changes - Client and endpoint solutions grew nearly 13% on an FX-neutral basis, driven by strong demand for notebooks and desktops [15][17] - Advanced solutions sales decreased by 4.5% year-over-year, with growth in servers and storage offset by weaker results in virtualization and infrastructure software [15][19] - Cloud revenues saw a 4% decline; however, excluding a non-core divestiture, cloud net revenues were up low single digits year-over-year [16][19] Market Data and Key Metrics Changes - Geographically, Latin America and Asia-Pacific regions experienced robust FX-neutral growth in the low teens year-over-year, while North America grew just over 3% [17] - EMEA showed slight growth on an FX-neutral basis, reflecting a generally softer macro environment in parts of Europe [17] Company Strategy and Development Direction - The company is focused on scaling its Xvantage digital platform and enhancing its AI ecosystem, positioning itself at the center of the $5 trillion global technology landscape [6][7] - The Enable AI program has engaged thousands of customers, providing tools for assessing and deploying AI solutions [10][21] - The company aims to support enterprise customers in their AI transformation journey, leveraging its proprietary AI innovation [6][7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the fourth quarter, expecting continued year-over-year net sales growth and a solid guidance range for revenues [24][54] - The impact of the ransomware incident was estimated to be within 1% to 1.5% of net sales, with a minimal effect on overall operations [14][21] - The company remains optimistic about the SMB segment, which has shown growth over the past three quarters [46][51] Other Important Information - The company returned $18.3 million to stockholders through dividends and announced a 2.6% increase in the quarterly dividend for Q4 [23] - The balance sheet showed net working capital of $4.9 billion, an increase from $4.3 billion year-over-year, driven by higher net sales [22] Q&A Session Summary Question: How should margins be expected to trend going forward? - Management indicated that guidance implies margins in the high 6s, with continued strength in SMB contributing positively [27][28] Question: How should inventory and free cash flow be viewed going forward? - Management noted a sequential decline in inventory and anticipated a solid cash flow quarter in Q4, similar to previous years [32][33] Question: Where is Xvantage seeing the most benefit? - Xvantage is benefiting across both SMB and enterprise segments, with SMB leveraging it for comprehensive business management [40][41] Question: What is the outlook for the PC refresh cycle? - The company is in the later stages of the PC refresh cycle, with potential for AI-powered PCs to extend this cycle [43] Question: What are the expectations for a budget flush exiting 2025? - Management noted a typical seasonal increase in revenues due to budgeting cycles, with a positive outlook for SMB spending [46]

Financial Performance - Q3 2025 - Net sales reached $126 billion, a 72% year-over-year increase[10] - Gross profit amounted to $870 million, up 29% compared to the previous year[10] - Non-GAAP net income was $169 million, representing a 60% increase year-over-year[10] - Adjusted EBITDA totaled $342 million, a 32% increase from the prior year[10] - Non-GAAP diluted EPS stood at $072, exceeding the guidance midpoint by $005[10] Financial Performance - YTD 2025 - Net sales reached $377 billion, an 88% increase year-over-year[13] - Gross profit was $25 billion, up 11% compared to the same period last year[13] - Non-GAAP net income amounted to $455 million, a 98% increase year-over-year[13] - Adjusted EBITDA totaled $927 million, a 29% increase from the prior year[13] - Non-GAAP diluted EPS stood at $194, up 37% year-over-year[13] Q4 2025 Guidance - The company projects net sales between $14 billion and $1435 billion, indicating year-over-year growth of 49% to 75%[35] - Gross profit is expected to range from $935 million to $990 million[35] - Non-GAAP EPS is projected to be between $085 and $095[35]

Financial Performance - Net sales for the thirteen weeks ended September 27, 2025, were $12,603,755, an increase of 7.1% compared to $11,762,628 for the same period in 2024[15] - Gross profit for the thirty-nine weeks ended September 27, 2025, was $2,537,568, representing a slight increase from $2,508,860 in the prior year[15] - Net income for the thirteen weeks ended September 27, 2025, was $99,457, up 29.1% from $76,969 in the same period last year[15] - Basic earnings per share for the thirty-nine weeks ended September 27, 2025, increased to $0.88 from $0.81 in the prior year, reflecting a growth of 8.6%[15] - For the thirty-nine weeks ended September 27, 2025, total net sales reached $37,678,554, a 9.0% increase from $34,639,001 in the same period of 2024[96] - Net income attributable to common stockholders for the thirty-nine weeks ended September 27, 2025, was $206,472, up from $181,106 in 2024, indicating a growth of approximately 14%[103] Assets and Liabilities - Total assets as of September 27, 2025, were $19,223,913, compared to $18,779,690 as of December 28, 2024, indicating a growth of 2.4%[13] - Total liabilities increased slightly to $15,121,538 as of September 27, 2025, from $15,045,815 at the end of 2024[13] - Retained earnings increased to $1,484,725 as of September 27, 2025, from $1,337,399 at the end of 2024, marking a growth of 11%[13] - Total stockholders' equity increased from $3,463,705 on June 29, 2024, to $3,613,905 on September 28, 2024, representing an increase of approximately 4.3%[21] - Total debt as of September 27, 2025, was $3,795,337, an increase from $3,353,140 on December 28, 2024, representing a 13.2% increase[70] Cash Flow and Expenses - Cash provided by operating activities for the thirty-nine weeks ended September 28, 2024, was $23,878, while cash used in operating activities for the same period in 2025 was $(644,428)[23] - Total cash and cash equivalents at the end of the period on September 28, 2024, were $849,472, down from $802,630 at the end of the period on September 27, 2025, indicating a decrease of approximately 5.5%[24] - Compensation expenses for the thirteen weeks ended September 27, 2025, totaled $415,343, slightly up from $409,833 in the same period of 2024[96] - Interest expense for the thirteen weeks ended September 27, 2025, was $81,720, a decrease from $86,254 in the same period of 2024[98] Market Segments - North America segment net sales were $4,425,888 for the thirteen weeks ended September 27, 2025, up from $4,283,677 in the prior year, reflecting a growth of 3.3%[96] - EMEA segment net sales increased to $3,662,309, a rise of 5.5% from $3,470,507 in the same quarter of 2024[96] - Asia-Pacific segment net sales grew by 12.5% to $3,549,666 compared to $3,153,879 in the prior year[96] - Latin America segment net sales increased to $965,892, up 13.0% from $854,565 in the same quarter of 2024[96] Foreign Currency and Tax - The company reported a foreign currency translation adjustment loss of $32,591 for the thirteen weeks ended September 27, 2025[17] - The company reported a net foreign currency exchange loss of $10,207 for the thirteen weeks ended September 27, 2025, compared to a gain of $10,675 in the prior year[98] - Gross unrecognized tax benefits increased to $16,834 as of September 27, 2025, compared to $15,666 at December 28, 2024[80] - The Brazilian subsidiary faces tax assessments totaling approximately $3,148 related to compliance and transaction-tax matters[87] Strategic Initiatives - The company plans to continue expanding its market presence and integrating new technologies into its platform[11] - The company is focused on maintaining its competitive edge amid market volatility and supply constraints[11] - The company plans to adopt new accounting standards effective after December 15, 2024, which are not expected to materially impact consolidated financial statements[49] Employee and Compensation - The company recognized a compensation expense of $4,048,000 for the thirteen weeks ended September 27, 2025, and $11,637,000 for the thirty-nine weeks ended September 27, 2025[57] - The company had 2,419 non-vested time-vesting restricted stock units with a weighted-average grant date fair value of $20.31[57] - The company had 3,684 non-vested performance-vesting restricted stock units with a weighted-average grant date fair value of $17.91 as of September 27, 2025[58] - The compensation expense for performance-vesting restricted stock units was $1,970,000 for the thirteen weeks ended September 27, 2025, and $3,470,000 for the thirty-nine weeks ended September 27, 2025[58] Restructuring and Costs - Restructuring costs for the thirteen weeks ended September 27, 2025, totaled $3,539, with 226 employees affected in North America and EMEA[74] - For the thirty-nine weeks ended September 27, 2025, total restructuring costs were $5,493, with 296 employees impacted[74] - The remaining restructuring liability of $4,759 is expected to be substantially paid by the third quarter of 2026[75]

Financial Performance - Net sales for Q3 2025 reached $12.6 billion, representing a 7.2% increase compared to $11.8 billion in Q3 2024[5] - Gross profit increased to $869.6 million, with a gross margin of 6.90%, down from 7.19% in the prior year[5] - Net income on a GAAP basis was $99.5 million, or $0.42 per share, while non-GAAP net income was $168.7 million, or $0.72 per share[3] - Net income for the thirteen weeks ended September 27, 2025, was $99,457, representing a 29.1% increase from $76,969 in the same period of 2024[31] - Basic earnings per share for the thirty-nine weeks ended September 27, 2025, were $0.88, up from $0.81 in the prior year, indicating a growth of 8.6%[31] - Adjusted EBITDA for the thirty-nine weeks ended September 27, 2025, was $926,958,000, an increase from $900,573,000 in the prior year, representing a growth of 2.9%[38] - The net income for the thirteen weeks ended September 27, 2025, was $99,457,000, up from $76,969,000 in the same period last year, indicating a year-over-year increase of 29.1%[39] - Adjusted net income for the thirty-nine weeks ended September 27, 2025, was $488,461,000, compared to $506,929,000 in the previous year, showing a decrease of 3.6%[39] Sales by Region - North America net sales were $4.4 billion, a 3.3% year-over-year increase, driven by sales of notebooks and servers[6] - EMEA net sales increased by 5.5% to $3.7 billion, with a positive currency translation impact of 5%[9] - Asia-Pacific net sales grew by 12.5% to $3.5 billion, primarily due to strong demand for client and endpoint solutions[11] - Latin America net sales rose by 13.0% to $1.0 billion, supported by growth in client and endpoint solutions[14] Future Guidance - The company expects Q4 2025 net sales guidance between $14.0 billion and $14.35 billion, with non-GAAP diluted EPS projected between $0.85 and $0.95[17] - The company provided guidance for future performance, emphasizing ongoing market expansion and new product development initiatives[36] Dividends and Shareholder Returns - A quarterly dividend of $0.08 per share was declared, reflecting a 2.6% increase from the previous dividend[18] Assets and Liabilities - Total current assets increased to $16,220,383 as of September 27, 2025, compared to $15,801,177 as of December 28, 2024, marking a growth of 2.6%[29] - Total liabilities stood at $15,121,538 as of September 27, 2025, slightly up from $15,045,815 as of December 28, 2024[29] - The company reported a total stockholders' equity of $4,102,375 as of September 27, 2025, an increase from $3,733,875 as of December 28, 2024[29] Operating Expenses - Operating expenses for the thirteen weeks ended September 27, 2025, were $646,134, compared to $627,318 for the same period in 2024, reflecting an increase of 3.9%[31] Cash Flow and Investments - Cash provided by investing activities was $66,139 million for the thirteen weeks ended September 27, 2025, compared to $29,941 million for the same period in 2024, representing a 121.1% increase[35] - Cash used in operating activities was $(146,038) million for the thirteen weeks ended September 27, 2025, compared to $(277,040) million for the same period in 2024, showing a 47.3% improvement[34] - Capital expenditures for the thirteen weeks ended September 27, 2025, were $(28,968) million, down from $(37,955) million in the same period in 2024, indicating a 23.6% decrease[34] - The company reported a decrease in cash and cash equivalents of $(54,038) million for the thirteen weeks ended September 27, 2025, compared to $(79,290) million for the same period in 2024, reflecting a 31.7% improvement[35] - The company reported cash and cash equivalents at the end of the period of $802,630 million, down from $849,472 million at the end of the same period in 2024[35] Risks and Challenges - The company faces various risks including market volatility, supply constraints, and competition, which could impact future performance[25] Operational Efficiency - Adjusted EBITDA and other non-GAAP financial measures were discussed, highlighting the company's focus on operational efficiency and cost structure alignment[36] - The company continues to focus on expanding its market presence and integrating new technologies into its platform, including the development of Ingram Micro Xvantage™[25] Stockholder Equity and Debt - Stockholders' equity as of September 27, 2025, was $4,102,375,000, an increase from $3,613,905,000 in the previous year[39] - The company’s long-term debt as of September 27, 2025, was $3,059,612,000, a decrease from $3,344,033,000 in the previous year[39] Earnings Per Share (EPS) - GAAP diluted EPS for the thirteen weeks ended September 27, 2025, was $0.42, compared to $0.35 for the same period in 2024, representing a 20% increase[44] - Non-GAAP diluted EPS for the thirty-nine weeks ended September 27, 2025, was $1.94, up from $1.87 in 2024, indicating a 3.74% growth[44] - Amortization of intangibles contributed $0.08 to GAAP EPS for the thirteen weeks ended September 27, 2025, down from $0.10 in 2024[44] - Integration, transition, and operational improvement costs added $0.22 to GAAP EPS for the thirteen weeks ended September 27, 2025, compared to $0.21 in 2024[44] - The tax impact of pre-tax adjustments reduced GAAP EPS by $0.10 for the thirteen weeks ended September 27, 2025, compared to a reduction of $0.13 in 2024[44] - Restructuring costs contributed $0.02 to GAAP EPS for the thirteen weeks ended September 27, 2025, consistent with the previous year[44] - Cash-based compensation expense added $0.02 to GAAP EPS for the thirteen weeks ended September 27, 2025, compared to $0.03 in 2024[44] Currency Impact - The company reported a net foreign currency exchange loss of $0.04 for the thirteen weeks ended September 27, 2025, compared to a gain of $0.05 in 2024[44] Forward-Looking Statements - The company is unable to provide a reconciliation of forward-looking GAAP diluted EPS to non-GAAP diluted EPS for fiscal fourth quarter 2025 due to uncertainties[45] - The forward-looking estimates of both GAAP and non-GAAP measures may differ materially from actual results, indicating potential volatility in future financial performance[45]

Core Insights - Ingram Micro Holding Corporation is preparing for a public offering again, but concerns exist regarding sales declines, thin margins, and increased debt levels [1] Group 1: Company Overview - Ingram Micro operates in a competitive and rapidly changing technology distribution sector [1] Group 2: Financial Performance - The company has experienced sales declines, which raises concerns about its financial health [1] - The margins are described as thin, indicating potential challenges in profitability [1] - Increased debt levels have been noted, which could impact the company's financial stability [1]

Group 1 - Ingram Micro Holding Corporation is highlighted as a promising IPO tech stock, particularly following its strategic partnership with Keepit, a cloud-native data protection provider [1] - The partnership aims to enhance Keepit's market presence in Germany and Switzerland by providing access to its SaaS data protection solutions for value-added resellers, managed service providers, and managed security service providers [2] - Ingram Micro will assist Keepit in marketing, sales, and support in these regions, while also offering flexible purchasing and financing solutions [3] Group 2 - Ingram Micro operates as a distributor of IT products, cloud services, and other offerings across various global regions, including North America, Europe, the Middle East, Africa, Asia-Pacific, and Latin America [4]

Core Perspective - Keepit has entered into a strategic go-to-market agreement with Ingram Micro to enhance its market presence in Germany and Switzerland [1] Company Summary - Keepit is identified as the world's only independent, cloud-native data protection, backup, and recovery provider [1] - The partnership with Ingram Micro aims to intensify the joint go-to-market strategy in the specified markets [1] Industry Summary - The collaboration reflects a growing trend in the technology ecosystem where B2B platform companies are forming strategic alliances to expand market reach [1]