Tech Data Sinks on Earnings Miss

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By Trey Thoelcke Updated Published
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Tech Data Corp. (NASDAQ: TECD) reported this morning that its second-quarter earnings came to $0.88 per share on $5.96 billion in revenue. The results were down from $1.10 per share on $6.44 billion in the same period a year ago, and compare to the Thomson Reuters consensus estimates of $1.17 per share and revenue of $5.83 billion.

The Clearwater, Fla.-based technology products wholesaler said it now expects year-over year sales growth of mid-single digits, in euros, in Europe, and a mid-single digit year-over-year sales decline in the Americas.

Robert M. Dutkowsky, chief executive officer, said:

Although worldwide net sales came in slightly ahead of plan and our European operations generated the region’s highest second-quarter sales and operating income, in euros, in its history, our gross margin was impacted by mix, as well as competitive pricing in both regions. The gross margin pressure was compounded by the implementation of certain modules of SAP in the U.S. during the quarter.

The company also said it repurchased $143 million of its stock during the quarter, which brings the cumulative repurchases to $1.1 billion.

Shares fell by more than 8% in premarket trading to $47.87. The 52-week trading range is $40.79 to $59.29. Thomson Reuters had a consensus analyst price target of $52.00 before this news.

Trey Thoelcke

Photo of Trey Thoelcke
About the Author Trey Thoelcke →

Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.

Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community. He previously oversaw the 24/7 Climate Insights site, managing editorial operations and content strategy, and currently oversees and creates content for My Investing News.

Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.

Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, overseeing a long-running critique group and moderating workshop sessions at regional conventions. He lives with his family in an old house in the Midwest.

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