Make us your home page

Tech Data beats expectations with $36.5 million in quarterly profit

Clearwater-based Tech Data topped Wall Street expectations with its third quarter earnings Tuesday morning.
[Company photo]

Clearwater-based Tech Data topped Wall Street expectations with its third quarter earnings Tuesday morning. [Company photo]

CLEARWATER — Sluggish demand for many of the IT products it distributes around the world didn't stop Tech Data Corp. from turning in a strong quarter.

Shares in Tampa Bay's largest public company by revenue rose nearly 3 percent on Tuesday after the company beat Wall Street expectations in reporting a fiscal third-quarter profit of $36.5 million.

The global distributor of computers, networks and other IT equipment posted net income of $1.03 per share for the period ended Oct. 31. Adjusted for mergers and acquisitions costs, that translated to net income of $1.44 per share, up 13 percent from a year ago. Analysts surveyed by Zacks Investment Research had anticipated earnings of $1.27 per share.

Revenue rose 1 percent to $6.49 billion.

CEO Robert Dutkowsky said the company's two divisions — the Americas and Europe — both grew in sales and improved the bottom line despite a still "challenging" level of IT demand.

Typically, IT spending rises 4 to 6 percent annually.

"Growth rates are less than average right now. That's a difficult environment for companies to navigate in," Dutkowsky said in an interview with the Tampa Bay Times.

To boost profits amid tight spending, Tech Data has to predict which niches among the 125,000 products it distributes will see greater demand, and capitalize on that. This quarter, Dutkowsky said, PCs were hotter with the rollout of new tablets, new laptops and new desktop computers. Security products for data centers and iPhones continued to be strong, as well.

In its current quarter, Tech Data forecast per-share earnings of $2.11 to $2.21 and revenue of $7.4 billion to $7.6 billion.

Shares in Tech Data have risen nearly 30 percent since the beginning of the year, driven in part by news of its pending $2.6 billion acquisition of Avnet Technology Solutions. The deal, the largest in Tech Data's history, could propel the company into rivaling Publix Super Markets as the largest company in Florida.

Its stock peaked at a new intra-day high Tuesday before closing at $86.40 a share, up $2.35.

Contact Jeff Harrington at Follow @JeffMHarrington.

Tech Data beats expectations with $36.5 million in quarterly profit 11/22/16 [Last modified: Tuesday, November 22, 2016 5:36pm]
Photo reprints | Article reprints

© 2017 Tampa Bay Times


Join the discussion: Click to view comments, add yours

  1. Appointments at the Tampa Metropolitan Area YMCA and the Straz Center highlight this week's Tampa Bay business Movers & Shakers



    The Tampa Metropolitan Area YMCA has named Matt Mitchell its new chief executive officer, effective Oct. 16. Selected by the Y's CEO Search Committee following a five-month search, Mitchell will succeed Tom Looby, who is retiring. Looby has served the Y Movement for 37 years, the past 10 …

    The Tampa Metropolitan Area YMCA has named Matt Mitchell as its new Chief Executive Officer. [Handout photo]
  2. Rep. Larry Ahern gets roughed up by Clearwater City Council

    State Roundup

    It seemed innocuous enough: an "end of session report" from state Rep. Larry Ahern, R-Seminole, to the Clearwater City Council.

    Then Ahern got taken to the woodshed.

    Rep. Larry Ahern is vying for a seat on the Pinellas commission.
  3. There's a bar in Tampa where you can roller skate and eat sushi

    Food & Dining

    Roller skating, it's not just for kids birthday parties and the 1970s anymore.

    The exterior of Pattinis features this mural by Art Aliens! [Pattinis South Tampa via Facebook]
  4. Lockdown: Florida's 97,000 prison inmates confined through weekend

    State Roundup

    All of Florida's 97,000 state prison inmates are on lockdown — and will remain confined to their dorms at least through the weekend — in response to unspecified threats about possible uprisings, officials from the Florida Department of Corrections confirmed Thursday.

    Blackwater River Correctional Facility. [Florida Department of Corrections]
  5. Carnival announces five more cruises from Tampa to Cuba


    TAMPA — Carnival Cruise Line is adding five more cruises from Tampa to Cuba in 2018, Port Tampa Bay announced Thursday.

      Carnival Cruise Line announced additional cruises to  Cuba. Pictured is its Paradise cruise ship departing on its inaugural voyage to Cuba from Tampa. | [MONICA HERNDON | Times]