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.

Trey Thoelcke


Filed under: 24/7 Wall St. Wire, Earnings, Pre-Market Activity Tagged: TECD
Read Full Story

Markets

DJIA 21,674.51 -76.22 -0.35%
NASDAQ 6,216.53 -5.39 -0.09%
S&P 500 2,425.55 -4.46 -0.18%
NIKKEI 225 19,470.41 -232.22 -1.18%
HANG SENG 27,047.57 -296.65 -1.08%
DAX 12,165.19 -38.27 -0.31%
USD (per EUR) 1.18 0.00 -0.07%
USD (per CHF) 0.97 0.00 0.09%
JPY (per USD) 109.39 0.18 0.17%
GBP (per USD) 1.29 0.00 0.00%

Can't get enough business news?

Sign up for Finance Report by AOL and get everything from retailer news to the latest IPOs delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.