Tech Data Shares Up 11 Percent After 3Q Earnings

Shares were trading at $38.60, up $3.74 per share, despite the Clearwater, Fla.-based distributor reporting earnings that fell 39 percent for the third fiscal quarter ended Oct. 31 due to restructuring charges in Europe.

Tech Data earned $23 million, or 40 cents per share, compared with $37.8 million, or 64 cents per share, for the year-ago quarter. Excluding charges, the company would have earned $30.7 million, or 53 cents per share, beating analysts&' consensus estimate of 46 cents per share, according to Thomson Financial/First Call.

The company also beat analysts&' revenue projections, with sales in the quarter of $5.09 billion, compared with $4.77 billion in the same quarter last year. Analysts had expected sales of $4.95 billion.

Tech Data took a $4.8 million restructuring charge and $3.2 million in consulting costs related to its Europe, Middle East and export sales to Africa (EMEA) business.

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“Our focused restructuring efforts in EMEA are delivering measurable operating improvements as demonstrated by our third-quarter results. We continue to generate industry-leading growth and operating results in the Americas, underscoring our position as a leading IT distributor,” said Steve Raymund, Tech Data's chairman and CEO, in a statement. "While we are pleased with the improvements we've made in our business, there is more work to be done. Through continued discipline and process enhancements, we expect to drive better worldwide operating results in the quarters ahead."

For the fourth fiscal quarter ending Jan. 31, Tech Data expects earnings of between 63 cents and 69 cents per share, with sales of $5.3 billion to $5.45 billion. Analysts are predicting income of 66 cents per share and sales of $5.51 billion, according to First Call.