Tech Data Sinks on Earnings Miss
Tech Data Corp. (NASDAQ: TECD) reported this morning that its second-quarter earnings came to $0.88 per share on $5.96 billion in revenue. The results were down from $1.10 per share on $6.44 billion in the same period a year ago, and compare to the Thomson Reuters consensus estimates of $1.17 per share and revenue of $5.83 billion.
The Clearwater, Fla.-based technology products wholesaler said it now expects year-over year sales growth of mid-single digits, in euros, in Europe, and a mid-single digit year-over-year sales decline in the Americas.
Robert M. Dutkowsky, chief executive officer, said:
Although worldwide net sales came in slightly ahead of plan and our European operations generated the region's highest second-quarter sales and operating income, in euros, in its history, our gross margin was impacted by mix, as well as competitive pricing in both regions. The gross margin pressure was compounded by the implementation of certain modules of SAP in the U.S. during the quarter.
The company also said it repurchased $143 million of its stock during the quarter, which brings the cumulative repurchases to $1.1 billion.
Shares fell by more than 8% in premarket trading to $47.87. The 52-week trading range is $40.79 to $59.29. Thomson Reuters had a consensus analyst price target of $52.00 before this news.
Filed under: 24/7 Wall St. Wire, Earnings, Pre-Market Activity Tagged: TECD