Ingram Micro Holding Corporation (NYSE:INGM) Q4 2024 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call summary shows strong performance in key areas like Asia Pacific and Latin America, and a robust product performance in cloud and endpoint solutions. The Q&A highlights confidence in 2025 growth and a $200 million share repurchase program, which are positive signals. However, risks like macroeconomic challenges and competitive pricing in India are noted, but the overall outlook remains positive due to strong financial metrics and optimistic guidance.
Key Financial Performance
EPS $0.92 (up from $0.91) year-over-year, beating expectations.
Top-line growth 3.5% growth on an FX-neutral basis year-over-year, driven by strength in Asia Pacific and Latin America, both up over 7%.
Sales to large and enterprise customers Strength observed, while small to medium-sized businesses and public sector remained softer.
Client and endpoint solutions Improved sales consistent with growth in desktop and notebook categories.
Advanced Solutions Impacted by slowness in networking, but server and storage were each up double digits versus the prior year.
You have reached the limit. Sign up to access full content
Get started
Operating Highlights
Client and Endpoint Solutions Growth: Client and endpoint solution sales improved consistent with the growth we are now seeing in desktop and notebook categories.
Cloud Performance: We continue to see robust performance in cloud, which grew over year-over-year and quarter-over-quarter.
Server and Storage Growth: Server and storage were each up double digits versus the prior year and sequentially.
Geographic Market Growth: Particular strength in Asia Pacific and Latin America, both up over 7% on an FX-neutral basis.
North America Growth: North America returned to year-over-year growth.
Top-line Growth: Exited Q4 with a return to year-over-year top-line growth of nearly 3.5% on an FX-neutral basis.
Focus on Automation and AI: More end users and vendors sharpening their focus on evolving automation use cases, including the use of AI.
You have reached the limit. Sign up to access full content
Get started
Risk or Challenges
Macroeconomic Challenges: Despite the return to year-over-year top-line growth, the company faced macroeconomic challenges throughout 2024 that could impact future performance.
Customer Category Performance: Sales to small to medium-sized businesses and the public sector remained softer, indicating potential risks in these segments.
Networking Sector Performance: Advanced Solutions experienced slowness in networking, which could affect overall growth if this trend continues.
Regulatory and Compliance Risks: The company referenced potential risks and uncertainties related to forward-looking statements, which may include regulatory issues.
Supply Chain Challenges: The overall performance may be influenced by supply chain challenges, particularly in the context of evolving automation and IT landscape.
Economic Factors: The company acknowledged that actual results may differ materially from expectations due to various economic factors.
You have reached the limit. Sign up to access full content
Get started
Guidance & Outlook
Top-line Growth: Exited Q4 with a return to year-over-year top-line growth of nearly 3.5% on an FX-neutral basis.
Regional Performance: Strength in Asia Pacific and Latin America, both up over 7% on an FX-neutral basis.
Customer Focus: Strength in sales to large and enterprise customers, while small to medium-sized businesses and public sector remained softer.
Product Performance: Robust performance in cloud, client and endpoint solutions, with server and storage up double digits.
Automation and AI: Focusing on evolving automation use cases, including AI, to help customers navigate the IT landscape.
2025 Top-line Growth: Expect the return to top-line growth seen in Q4 to sustain in 2025.
Networking Recovery: Expect networking to rebound from challenging year-over-year comparisons.
Client and Endpoint Solutions: Sales in client and endpoint solutions are expected to improve with growth in desktop and notebook categories.
You have reached the limit. Sign up to access full content
Get started
Shareholder Return Plan
Share Repurchase Program: Ingram Micro announced a share repurchase program of $200 million, aimed at returning capital to shareholders.
You have reached the limit. Sign up to access full content
Get started
Key Q&A
Q:Could you talk a little bit about why large enterprise is outperforming? Are you seeing any sophisticated buying ahead of tariffs?
A:The purchasing in large enterprise business was across all regions, not just North America. We saw growth in client endpoint solutions, advanced solutions, and cloud. The refresh momentum is primarily around Windows and aged systems.
Q:What are you hearing from your customers that gives you confidence to say you can return to top-line growth in 2025?
A:We see strength in endpoint client solutions and signs of improvement in advanced solutions. IDC predicts an 8% growth in 2025, and our leading indicators from large vendors show continued strength.
Q:Can you help us understand if there are any one-time costs embedded in your 1Q profitability guide?
A:There are no notable one-offs; the decline in profitability is mainly due to margin factors, particularly in India and heightened competition.
Q:How are you thinking about changes in demand if tariffs were to be implemented?
A:The situation is fluid. We typically pass through tariffs to customers, but the impact on demand will depend on price elasticity and customer tolerance.
Q:What is your strategy to deal with the competitive pricing environment in India?
A:We are focused on quality of revenue and have walked away from deals that do not meet our profitability expectations. We are also rebuilding teams and focusing on customer relationships.
Q:What are your expectations for the SMB market as the year progresses?
A:SMB was down in Q4, but we expect it to come back as we see early signs of improvement, particularly in advanced solutions and networking.
Q:Is there a change in the expectation for how you’re going to drive operating leverage?
A:We are focused on reducing OpEx and improving efficiencies through the Xvantage platform, which allows us to scale at a lower cost.
Q:Review of Unclear Management Responses
A:Management avoided giving a direct answer regarding the specific impact of tariffs on demand and the competitive pricing environment in India, using vague language about the fluid situation and price elasticity. Additionally, there was insufficient detail on the specific strategies to mitigate the impact of competitive pricing.
You have reached the limit. Sign up to access full content
Get started
Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
Form Ks
Greetings Ingram
Holding CEO
Holding NYSE
Holding expectation
Holding participant
Ks SEC
Micro Holding
NYSE Transcript
President Investor
Relations today
Transcript Ingram
Vice President
answer session
conference pleasure
expectation Greetings
mode answer
participant mode
plan positioning
pleasure Vice
positioning cash
presentation reminder
reminder conference
return expectation
session presentation
stockholder return
today Ingram
INGM Transcript
Ingram Micro Holding Corporation (INGM) Q3 2025 Earnings Call Transcript
Unknown10-31
The earnings call reveals mixed financial performance: strong revenue growth but declining margins and adjusted free cash flow outflow. While the company maintains a positive outlook, the ransomware incident and uncertainties in AI impact create caution. Q&A insights suggest stable margins and solid cash flow expectations, but management's lack of clarity on AI and cash flow guidance tempers optimism. Overall, the sentiment is neutral, balancing positive growth and operational performance with concerns over margins and guidance clarity.
Ingram Micro Holding Corporation (INGM) Q2 2025 Earnings Call Transcript
Unknown8-7
The earnings call presents a mixed picture: while there is a record revenue growth of 16.2% and positive advancements in server and networking, the guidance for the next quarter is moderate at 3-5%. The Q&A highlights uncertainties in government subsidies and AI revenue impact, and management's evasive answers create some uncertainty. The positive financial performance is offset by cautious guidance and unclear responses, suggesting a neutral stock price reaction.
Ingram Micro Holding Corporation (NYSE:INGM) Q4 2024 Earnings Call Transcript
Positive3-5
The earnings call summary shows strong performance in key areas like Asia Pacific and Latin America, and a robust product performance in cloud and endpoint solutions. The Q&A highlights confidence in 2025 growth and a $200 million share repurchase program, which are positive signals. However, risks like macroeconomic challenges and competitive pricing in India are noted, but the overall outlook remains positive due to strong financial metrics and optimistic guidance.
Earnings call transcript: Ingram Micro Q4 2024 earnings beat expectations
Unknown3-4
The earnings call presents mixed signals. While there are strong investments in cloud and digital transformation, financials show flat net sales and declining margins, which are concerning. The Q&A reveals some uncertainties, particularly around tariffs and SMB market weakness. However, optimistic guidance for 2025 and shareholder returns through dividends and buybacks balance these negatives. With no market cap provided, a neutral sentiment is suggested as the stock may not react strongly in either direction.
INGM Slides
Frequently Asked Questions
Where does this earnings call transcript come from?
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
How soon is the transcript available after the earnings call ends?
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
Is the transcript edited or altered in any way?
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
Why do some answers appear as “Unclear” or “Inaudible”?
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
Who creates the AI Summary and Key Q&A highlights shown above the transcript?
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
