Tech Data hurdles 2Q estimates

Tech Data easily topped analysts' estimates in its second quarter Tuesday, raking in $40.8 million, or 72 cents a share, on sales of $5 billion.

First Call Corp. consensus expected it to return a profit of 67 cents a share in the quarter.

Ahead of the earnings report, Tech Data (Nasdaq: TECD) shaved off 1 13/16 to 52 1/2.

The $5 billion in sales marks a 24 percent improvement from the year-ago quarter when it earned $29.4 million, or 54 cents a share, on sales of $4 billion.

"We generated excellent revenue and profit growth in the second quarter, reflecting Tech Data's strongest market position in our 26-year history," said CEO Steven Raymund in a prepared release. "By relentlessly focusing on our core competencies and delivering unparalleled customer service, we are proving that Tech Data is the best logistics partner for today's technology leaders."

In the quarter, Tech Data recorded a 43 percent surge in U.S. sales and a 16 percent improvement in Europe.

Systems sales increased 37 percent in the quarter, while peripherals and networking sales increased 27 percent and 26 percent, respectively.

Last quarter, Tech Data posted a profit of $37.2 million, or 68 cents a share, on sales of $4.92 billion.

The stock moved up to a 52-week high of 55 1/2 in July after falling to a low of 18 in October.

Fifteen of the 17 analysts following the stock rate it either a "buy" or "strong buy."