Tech Data Tops Q1 Expectations

Loading...
Loading...
Tech Data Corp
TECD
reported better-than-expected results for the first quarter on Thursday. The Clearwater, Florida-based company reported quarterly net income of $51.3 million, or $1.38 per share, compared to $13.5 million, or $0.35 per share, in the year-ago period. Excluding non-recurring items, the company's earnings rose to $0.80 per share from $0.72 per share. Its revenue slipped around 12 percent year-over-year to $5.89 billion. However, analysts were expecting a profit of $0.71 per share on revenue of $5.63 billion. The average estimate among 4 Estimize users was for earnings of $0.72 per share and revenue of $5.89 billion. Net sales in the Americas fell 6 percent to $2.3 billion, while Europe sales dropped 17 percent to $3.5 billion. Its gross profit for the latest quarter declined to $291.9 million, or 4.96 percent of net sales, versus $335.3 million, or 4.98 percent of net sales. Non-GAAP operating income dropped to $50.2 million, versus $51.2 million. "We are pleased to report an excellent start to Tech Data's fiscal year 2016," said Robert M. Dutkowsky, chief executive officer. "Strong execution by our European team, supported by a better than expected demand environment, allowed us to overcome significant currency headwinds and a shortfall in our Americas region, and still deliver solid growth in non-GAAP net income and double-digit growth in non-GAAP earnings per share." For the second quarter, Tech Data projects low to mid-single-digit sales drop in the Americas, and mid-single digit sales gain in Europe, in local currency. Tech Data shares gained 2.31 percent to close at $61.22 yesterday.
Loading...
Loading...
Posted In: EarningsNewsGuidanceprofit
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...