It's been a while since distributor Tech Data Corp. projected a year-over-year sales increase, but it is doing so for its fourth fiscal quarter ending January 31, 2010.
The company anticipates a "low-to-mid single digit" increase for sales, assuming that recent signs of improving IT demand continue, this after distributor surpassed Wall Street's sales and earnings expectations for the third quarter ended Oct. 31.
"Although the magnitude and timing of an economic recovery remain uncertain, there are clearly signs of an improving outlook," said CEO Bob Dutkowsky, in a statement. "Tech Data continues to execute very well in a challenging environment. Our third-quarter results exceeded our expectations for the fourth consecutive quarter, validating the power of our business model and the strength of our leadership team."
Tech Data earned $43.1 million, or 84 cents per share, on $5.64 billion in sales in the third quarter. The results compare to $16.8 million in net income, or 33 cents per share, on $6.14 billion in sales for the year-ago quarter. Analysts had projected earnings of 71 cents per share on $5.33 billion in sales.
For the quarter ending January 31, 2010, analysts forecast earnings of 82 cents per share on sales of $5.65 billion. In the fourth quarter last year, Tech Data earned $58.6 million, or $1.17 per share, on sales of $5.71 billion.
Sales in the Americas were $2.46 billion, down 10.9 percent from the third quarter last year. European revenue fell 5.7 percent to $3.18 billion. Gross margin for the third quarter was 5.26 percent compared to 4.86 percent in the prior-year third quarter.
Shares of Tech Data were up 3 percent or $1.09 to $43.91 in early trading.
