Tech Data slides despite strong 2Q results

Shares of Tech Data Corp. (Nasdaq: TECD) tumbled 4, or 11 percent, to 32 1/16 Thursday even though it met analysts' estimates in its second quarter.

On Wednesday, it posted a profit of $29.4 million, or 54 cents a share, on sales of $4 billion.

First Call consensus pegged it for a profit of 54 cents a share.

The $4 billion in sales was an 82 percent jump from the year-ago quarter when it raked in $27.7 million, or 55 cents a share, on sales of $2.2 billion.

"Our second quarter results were particularly strong considering the intensely competitive market conditions," said CEO Steven Raymund in a prepared release. "We not only surpassed the $4 billion quarterly sales mark for the first time in our history, but also produced excellent profitability while controlling SG&A expenses as a percentage of sales to a record low of 3.98%."

Tech Data said it experienced strong second quarter sales growth across all regions, led by the U.S.

Excluding the effect of acquisitions, sales growth rates worldwide, in the U.S., Europe, and other international markets were 22 percent, 28 percent, 16 percent and 11 percent, respectively.

U.S. sales accounted for 51 percent of the total sales in the quarter.

Tech Data shares rallied last week after Banc America Securities upgraded the stock from a "buy" to a "strong buy" recommendation.

Its shares hit a 52-week high of 53 1/8 last September before falling to a low of 14 1/2 in March.

Fifteen of the 18 analysts following the stock maintain either a "buy" or "strong buy" recommendation.