Distributor CHS Electronics saw third quarter net profit more than double, but admitted it was slowing down its acquisition plans to focus on organic growth.
The company recently backed out of a planned takeover of German distributor Vobis and yesterday, its chairman Claudio Osorio told US reporters that there were no other significant European targets left.
"We are on a slower pace, mainly focused on smaller acquisitions," he said. "It's important to see the company grow on its own."
The third quarter results, which surpassed analysts' expectations, went some way to calm market nervousness about CHS. Its stock fell to its lowest point for a year last week on speculation that it had pulled out of the Vobis acquisition because it could not raise the capital required for the $660 million deal.
Although Osorio said when the deal collapsed that Vobis' owner Metro had failed to meet some of the conditions, Vobis denied this and claimed CHS was not able to pay the purchase price, "despite extensions to the original terms".
CHS' chief financial officer, Craig Toll, did not comment on this, but said the company would now focus on purchases small enough to be paid from earn-outs in cash or stock.
But before the results were announced yesterday, the stock rebounded sharply, rising 50 per cent in value in two days to $15.3 yesterday.
Net income rose by 103 per cent to $23.2 million or 41 cents a share, on sales up 97 per cent to $2.17 billion. Analysts had predicted 39 cents.
CHS credited strong global demand for storage, and good PC sales in Europe, with the increase, and said these trends offset weakness in its key Latin American markets.
The company, which is based in Miami but operates primarily in Latin America and Europe, said it still planned to push into the US market through growth and acquisition.
Campaigners want US authorities to break-up Instagram, WhatsApp and Messenger into separate companies
The perception of the industry as "a white man in a hard hat" is limiting new applicants, says Hayaatun Sillem
Almost two years late - and just as AMD is readying 7nm Zen 2 for early 2019
Eye-wateringly expensive smart speakers take just six per cent market share, claims Strategy Analytics