Tech Data exceeds 1Q expectations
Tech Data (Nasdaq: TECD) beat analyst estimates in the first quarter.
After market close Wednesday, the technology products distributor reported net income of $37.2 million, or 68 cents per share. First Call's survey of 15 analysts predicted a profit of 64 cents per share.
Shares of Tech Data rose to 40 3/4 on the Island electronic comunications network in afterhours activity immediately following the earnings report. The stock closed Wednesday's regular trading at 38, up 1/2 for the session.
Sales in the first quarter rose to $4.92 billion, a 27 percent gain from $3.88 billion in the comparable period a year earlier. Peripheral sales increased 35 percent and made up the single largest portion of Tech Data's revenue, followed by systems, then networking products and software.
"We are extremely pleased with our first-quarter performance," said Steven A. Raymund, CEO and chairman. "These results show substantial market share gains, particularly in the Americas, while demonstrating the continued success of our overall strategic plan."
U.S. sales increased 48 percent year-over-year. European revenue rose 19 percent. Other regions combined for 82 percent growth.
Competitors of Tech Data include Ingram Micro (Nasdaq: IM).>