Tech Data Posts Higher Profit In Q3 - Update

(RTTNews) - Tech Data Corp. (TECD), a wholesale distributor of technology products, Tuesday reported higher third-quarter profit, as sales grew 6 percent, with growth in both regions.

For the third quarter ended October 31, the company posted net income of $41.7 million or $1.09 per share, up from $37.72 million or $0.99 per share in the previous year. Adjusted earnings were $1.18 per share, while the firm posted $1.04 per share in the prior-year quarter.

On average, eight analysts polled by Thomson Reuters expected the company to report earnings of $1.02 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter grew 6 percent to $6.76 billion from $6.37 billion in the preceding year. Wall Street analysts were looking for revenue estimate of $6.79 billion.

Excluding negative impact of weakening of certain foreign currencies against the U.S. dollar, net sales were up 9 percent from last year.

In the Americas, net sales were $2.6 billion, an increase of 3 percent from last year. Net sales in Europe rose 8 percent to $4.1 billion. Europe sales comprised about 61 percent of worldwide net sales.

Operating margin on a non-GAAP basis was 1.05 percent, compared to 0.99 percent a year ago.

For the fourth quarter ending January 31, 2015, the company sees year-on-year low single-digit sales growth in both regions in local currency.

Robert Dutkowsky, chief executive officer stated, "Tech Data's capabilities and strategic position in the IT ecosystem are stronger today than ever, and we are pleased with the trajectory of our business as we enter our final quarter of fiscal 2015."

TECD closed Monday's trading at $62.63, up 0.24 percent.