Tech Data's sales and net income were below analysts' expectations for the third fiscal quarter, due to macroeconomic weakness and the implementation of some SAP modules that led to lost market share in the U.S., according to the company.
The Clearwater, Fla.-based distributor reported earnings of $45.9 million, or $1.21 per diluted share, on $6.04 billion in sales for the quarter ended Oct. 31, compared with earnings of $53.5 million, or $1.26 per diluted share, on $6.59 billion in sales for the year-ago period.
Analysts had expected earnings of $1.33 per share on $6.20 billion in sales.
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"During our third quarter we continued to face weak macroeconomic environments and slowing demand, as well as challenges in our U.S. operations following the implementation of certain SAP modules in the second quarter. Our worldwide operating performance, which fell short of our plan and prior year, reflects the ongoing impact of these challenges," said Tech Data CEO Bob Dutkowsky in a statement.
Tech Data reported $2.37 billion in sales in the Americas, down 15 percent from the prior-year third quarter. Part of that decline, about $101 million, is reflected in a change in the presentation of vendor warranty services and certain fulfillment contracts, according to the company. In addition, the year-ago results include about $52 million in sales from operations in Brazil and Columbia, countries in which Tech Data stopped doing business at the end of its last fiscal year. Excluding the impact of those factors, Americas revenue fell about 10 percent, according to the company.
European sales were $3.67 billion, down 4 percent from the prior-year quarter.
For the current quarter, Tech Data expects low-single-digit sales growth compared to the fourth quarter last year and a low-double-digit sales decline in the Americas due to the SAP implementation and the exit of the Brazil and Columbia operations.
Analysts are expecting earnings of $1.86 per share on $6.84 billion in revenue for the current quarter.
Tech Data shares closed at $45.46 Monday, up 4 percent from the previous Friday's close.
PUBLISHED NOV. 20, 2012