Replies to post #201855 on Zeev's Turnips Patch-No Politics (ZEEV)

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What do you think about this?

=DJ Brightpoint Dn -2: Deutsche Banc Cuts Price Target >CELL


By Andrew Wallmeyer
Of DOW JONES NEWSWIRES

NEW YORK (Dow Jones)--Shares of Brightpoint Inc. (CELL) fell 16% after its fourth-quarter results came in shy of Wall Street expectations due to a decline in sales of its wireless handsets in India.

The cell phone equipment maker recently traded at $18.81, down $3.51, or 15.7%.

A Brightpoint spokesman declined to comment, noting that it is the company's policy not to publicly address stock price fluctuations.

After Thursday's market close, the company reported earnings of 28 cents a share, compared with 7 cents a share a year ago. Earnings from continuing operations came in at 33 cents a share, while revenue rose 60%, to $547.1 million.

Deutsche Bank analyst Brian Modoff, who was the only analyst surveyed by Thomson First Call, expected Brightpoint to earn 34 cents a share on $575 million in revenue. The analyst noted, however, that the company would have topped his estimate by 3 cents a share if one were to also exclude a $1 million factory consolidation charge.

Modoff cut his price target on the company to $22.50 from $26, reflecting lower earnings expectations and a reduced P/E multiplier of 15, which he said is more in line with lower-margin distribution companies such as Brightpoint.

The analyst dropped his first-quarter earnings estimate to 20 cents a share on revenue of $482.1 million from 26 cents a share on revenue of $503.1 million.

Modoff lowered his second-quarter earnings estimate to 29 cents a share on revenue of $544.4 million from 31 cents a share on revenue of $565.9 million.

His fiscal 2004 view dropped to earnings of $1.21 a share on revenue of $2.23 billion from $1.33 a share and $2.3 billion, while his 2005 outlook changed to earnings of $1.50 a share on revenue of $2.45 billion from earnings of $1.48 a share on revenue of $2.53 billion.

Modoff doesn't own any Brightpoint shares, nor does Deutsche Bank have an investment banking relationship with the company.