No, Wyle Laboratories isn't in the battered health-care business. The company is a major distributor of high-tech electronic products, mainly computer systems and semiconductors. "With the demand for computers and semiconductors now strongly on the rise, Wyle's sales and profits will strike the big numbers over the next two years," says Boston money manager Scott Black.
Although the company willingly sacrificed profits for increased market share by pursuing a big expansion program, some analysts have started to raise their earnings estimates for the next two years. Wyle is the biggest distributor of Intel's microprocessors and products of such high-tech manufacturers as Motorola and Texas Instruments. The company has opened 10 distribution facilities in the Midwestern and Eastern parts of the country to complement its Western base.
Black says not many investors recognize the potential of Wyle's expansion program. Many have dumped their shares. But some who have held on are Fidelity Magellan, Invesco Funds Group, and Delphi Management, of which Black is president. He sees the stock hitting 30 in two years.
Value Line analyst Glenn Johnson, who earlier had expected Wyle to post lower earnings for the year ending Jan. 1, 1994, recently pushed up his projection. He now thinks the company will earn $1.10 in fiscal 1994 and $1.70 in 1996, vs. fiscal 1993's $1.45.