Tech Data Tops Q1 Expectations

Tech Data Corp (NASDAQ: 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.