Systems sales led the way for Tech Data Corp. (Nasdaq: TECD) in a first quarter that came out a little ahead of analyst expectations.
In fiscal first quarter results released after market close Monday, the distributor of computers and related equipment posted net income of $28 million, or 53 cents a share. First Call's survey of 15 analysts predicted earnings of 52 cents for the quarter ended April 30.
First quarter sales rose 77 percent year-over-year, to $3.88 billion from $2.18 billion. Profits rose 21 percent from $23.1 million, or 46 cents a share, in the comparable period last year.
Tech Data's systems division saw a 104 percent increase in sales, the company said. Peripherals revenue increased 78 percent, software picked up 71 percent and networking sales grew 49 percent.
Excluding the effect of acquisitions, first quarter sales growth rates were 17 percent in the United States, 18 percent in Europe and 17 percent worldwide. U.S. business made up about 46 percent of overall sales during the quarter, while Europe and other international markets totaled 49 percent and 5 percent, respectively.
Shares of Tech Data rose 1 11/16 to 41 11/16 prior to the earnings report. Of 18 analysts polled by Zack's Investment Research, 11 recommend Tech Data as a "strong buy", four have "moderate buy" ratings, and four maintain the equivalent of "hold" advisories.>