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Tech Data sets profit record

Published May 28, 1997|Updated Oct. 1, 2005

Tech Data Corp. posted record first-quarter earnings on Tuesday, surpassing analysts' expectations and jump-starting its lagging stock price.

The Clearwater-based wholesale distributor of computer components said net income leaped 75 percent to $18.2-million, or 41 cents a share, in the fiscal quarter that ended April 30. The company earned $10.4-million, or 27 cents a share, in the same period a year ago.

Tech Data's performance even surprised analysts who had estimated that the company would earn 36 cents a share in the first quarter.

Wall Street seemed to anticipate the positive earnings report. Tech Data stock closed Tuesday at $28.37{, up $1.12{, even though the company issued its earnings after the market closed. More than 1.8-million shares exchanged hands, more than double the average daily volume so far this year.

"We think that the stock is moving more towards a fairly valued stock," said Jeffery P. Howells, Tech Data's chief financial officer. "It's been undervalued."

Sales in the quarter climbed 39 percent to $1.37-billion from $986-million a year earlier. This projects out to more than $5-billion in revenue over a full year, the first time the company would pass that mark.

Sales of peripherals, such as printers and monitors, totaled nearly $550-million and grew by 44 percent in the quarter. Many computer owners are upgrading to 17-inch monitors, Howells said.