Tech Data posts healthy Q2 profit
Beats Wall Street estimates
Shares in computer distributor Tech Data shot up eight per cent today on news that it had outshone Wall Street estimates on strong growth in the Americas.
The firm, which posted a healthy quarterly profit and gave a revenue forecast for the current quarter that was above market expectations, saw shares jump $3.06 to $38.28 on NASDAQ.
Net sales for the three months ended 31 July was $5.6bn, an increase of more than 13 per cent compared to the same period in 2006. Average analyst estimates had set a figure of $5.3bn.
Tech Data, which competes with Ingram Micro in the European and American computer distie marketplace, forecast Q3 sales of $5.75bn-$5.9bn, again ahead of average analyst forecasts of $5.67bn revenue.
The firm attributed strong PC growth in the American market for its bullish figures.
"We are extremely pleased with our second quarter performance as our focus on execution delivered strong results in both of our geographic regions.
"Through responsible sales and product management, we achieved record second-quarter net sales - highlighted by very strong growth in the Americas region that outpaced the market," said Tech Data's chief executive officer Robert Dutkowsky. ®