Tech Data Misses Q3 Views

Tech Data Corp TECD reported weaker-than-expected results for the third quarter on Tuesday. The Clearwater, Florida-based company reported quarterly net income of $41.9 million, or $1.18 per share, compared to $41.7 million, or $1.09 per share, in the year-ago quarter. Excluding one-time items, the company's adjusted earnings came in at $1.28 per share. Its revenue declined 5 percent year-over-year to $6.43 billion. However, analysts were expecting earnings of $1.39 per share on revenue of $6.53 billion. The average estimate among 8 Estimize users was for earnings of $1.38 per share and revenue of $6.6 billion. Sales from the Americas fell 3 percent to $2.6 billion, while sales from Europe fell 6 percent to $3.9 billion. Gross profit declined to $314.8 million, or 4.90 percent of net sales, versus $335.0 million, or 4.95 percent of net sales. "Continuing our positive first half momentum, I am pleased to report that Tech Data delivered another solid quarter in Q3 of fiscal 2016, said Robert M. Dutkowsky, chief executive officer. "On a constant currency basis, we posted good top line growth, improved non-GAAP operating income by nearly twice the rate of sales growth, and grew non-GAAP earnings per share by 19 percent to a record Q3 level. For the current quarter ending, Tech Data projects revenue of $7.05 billion to $7.25 billion. Tech Data shares fell 0.86 percent to close at $75.73 yesterday.