Tech Data Sinks on Earnings Miss

Before you go, we thought you'd like these...
Before you go close icon

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

S&P 500 2,361.13 2.56 0.11%
DJIA 20,659.32 -42.18 -0.20%
NASDAQ 5,897.55 22.41 0.38%
DAX 12,212.12 9.12 0.07%
NIKKEI 225 19,063.22 -154.26 -0.80%
HANG SENG 24,301.09 -90.96 -0.37%
USD (per EUR) 1.07 0.00 -0.18%
USD (per CHF) 1.00 0.00 -0.10%
JPY (per USD) 111.11 -0.04 -0.03%
GBP (per USD) 1.24 0.00 0.03%

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips 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.

From Our Partners

This Elephant Was Separated From Her Mother As A Baby - But She's About To Get A Huge This Elephant Was Separated From Her Mother As A Baby - But She's About To Get A Huge
19 of the Creepiest, Most Inexplicable Things People Ever Experienced 19 of the Creepiest, Most Inexplicable Things People Ever Experienced
Man Built This Contraption In His Backyard - And Even He Was Surprised How Well It Worked Man Built This Contraption In His Backyard - And Even He Was Surprised How Well It Worked