Tech Data Misses Earnings Expectations

The Clearwater, Fla.-based distributor earned $17.2 million, or 30 cents per share, in its second fiscal quarter, ended July 31. That compares to net income of $35.3 million, or 60 cents per share, in the year-ago quarter. Analysts had predicted a consensus of 36 cents per share, according to Thomson Financial/First Call.

The results include a $2 million charge related to the closure of Tech Data's U.S. education business. Excluding the charge, the company would have earned 34 cents per share.

In the first fiscal quarter, the distributor reported earnings of 38 cents per share, 2 cents per share less than analysts expected.

Revenue in the second quarter increased to $4.18 billion, compared to $4 billion for the same period last year.

Sales in the Americas declined 10.8 percent, while sales in Europe increased 24.1 percent.

In the current quarter, Tech Data said it expects net income between $23 million and $26 million, or 40 cents to 45 cents per share, on sales of between $4.05 billion and $4.2 billion. First Call projects earnings of 41 cents per share.

Tech Data Chairman and CEO Steve Raymund said he was encouraged by improved market conditions in the second half of the quarter.

"We are very focused on further improving operating results, although weak European economic conditions may impede our short-term potential. Despite the challenges, we remain well-positioned with an increasingly diversified portfolio of technology products," he said in a statement.

Shares of Tech Data closed at $33.30 Wednesday, up 78 cents, or 2 percent. Shares fell to $32.85 in after-market trading following the earnings release.