Tech Data Corp. captured "targeted market share gains" in its fourth fiscal quarter ended Jan. 31, which helped it beat analysts' expectations for both revenue and net income.
The Clearwater, Fla.-based distributor reported $70.1 million in profit, or $1.35 per share, on $6.28 billion in sales for the quarter. The results compare to a $57 million profit, or $1.14 per share, and $5.71 billion in sales in the year-ago quarter. Analysts had been expecting earnings of $1.01 per share on $6.03 billion in sales in the fourth fiscal quarter.
"Through the downturn, we've further strengthened Tech Data's position in the channel, demonstrating our ability to bring both efficiencies and innovative solutions to our partners. As a result, our customers have rewarded us with additional business, and vendors' trust has never been higher," said CEO Bob Dutkowsky in a statement. "Furthermore, we're particularly encouraged by the resumption of sales growth in both regions in the fourth quarter."
In the Americas, sales were $2.50 billion, a 6.7 percent increase from the year-ago quarter. European revenue increased 12.3 percent to $3.78 billion.
For the 2010 fiscal year, Tech Data earned $180.2 million, or $3.54 per share, on $22.10 billion in sales. That compares to $117.3 million in net income, or $2.28 per share, on $24.08 billion in sales for the previous fiscal year. The strengthened U.S. dollar against certain foreign currencies negatively impacted year-over-year sales by about two percentage points, according to Tech Data. Fiscal-year sales in the Americas were $9.6 billion, down from $10.6 billion last year.
According to the company, sales in the first quarter are expected to increase in the mid single-digit range year-over-year, assuming the recent signs of improving IT demand continue. For the current fiscal quarter ending April 30, analysts project earnings of 72 cents per share on $5.48 billion in revenue.
Shares of Tech Data closed at $44.83 on Monday, up nearly $2 per share from $42.84 on Feb. 26.
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