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Tech Data Corp (NASDAQ:TECD)’s 1Q Adj. Profit Misses Estimates

Boston, MA 05/29/2014 (wallstreetpr) – Wholesale distributor of technology products, Tech Data Corp (NASDAQ:TECD) announced a fall in profit for the first quarter hurt by stock-based compensation charges and weak margins. However, its adjusted profit rose on the back of a 9% growth in the top line. None-the-less, the company’s profit fell shy of estimations.

1Q Results

The company reported net income of $13.5 million or 35 cents a share for the first quarter, down approximately 25% from $17.8 million or 47 cents a share in the year earlier period. On an adjusted basis, excluding special items, net income advanced 10.4% to $27.7 million from $25.1 million, while earnings rose 9.1% to 72 cents a share from 66 cents a share in the year-ago quarter. On average, 9 analysts’ estimated Tech Data Corp to report earnings of 92 cents a share.

Net sales advanced 9.5% to $6.728 billion from $6.147 billion in the previous year quarter. Excluding currency impact, net sales would have grown about 6%. Wall Street analysts, on average, predicted Tech Data Corp (NASDAQ:TECD) to generate revenue of $6.48 billion.

While net sales from Europe increased 10% to $4.3 billion representing a contribution of about 63% to overall revenue, the Americas’ net sales grew 8% to about $2.5 billion representing about 37% of the contribution to total sales.

Other Metrics

Gross profit rose marginally to $335.3 million or 4.98% of net sales from $322.4 million or 5.24% of net sales in the year-ago quarter, while selling, general and administrative costs increased to $291.6 million or 4.33% of net sales from $283.4 million or 4.61% of net sales in the year earlier quarter. On an adjusted basis, S,G&A were 4.22% of net sales compared to 4.49% in the previous year quarter

Outlook

Moving ahead, Tech Data Corp (NASDAQ:TECD) sees sales grow in the low to mid-single digits in the Europe and Americas during the second quarter. The company does not see any change in gross margin from the recent levels.

Published by Brendan Byrne

While studying economics, Brendan found himself comfortably falling down the rabbit hole of restaurant work, ultimately opening a consulting business and working as a private wine buyer. On a whim, he moved to China, and in his first week following a triumphant pub quiz victory, he found himself bleeding on the floor based on his arrogance. The same man who put him there offered him a job lecturing for the University of Wales in various sister universities throughout the Middle Kingdom. While primarily lecturing in descriptive and comparative statistics, Brendan simultaneously earned an Msc in Banking and International Finance from the University of Wales-Bangor. He's presently doing something he hates, respecting French people. Well, two, his wife and her mother in the lovely town of Antigua, Guatemala. You may contact Brendan via his email ([email protected]) or his Google+ page (https://plus.google.com/u/0/116608759701551457422).

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