Tech Data 2Q Profit Jumps 59 Pct, Shares Advance

CLEARWATER, Fla. (AP) — Technology products distributor Tech Data Corp. said Thursday its fiscal second-quarter profit surged 59 percent and topped Wall Street expectations, boosted by lower expenses even as revenue declined.

For the three months ended July 31, the company earned $35.2 million, or 70 cents per share, up from $22.1 million, or 42 cents per share, in the same period a year earlier.

Revenue fell 16 percent to $5.18 billion from $6.17 billion.

Analysts, on average, were expecting a more modest profit of 45 cents per share on sales of $5.04 billion, according to a poll by Thomson Reuters.

Tech Data said the quarter's selling, general and administrative expenses declined 16 percent to $215.2 million, and the company slashed its cost of sales by 16 percent to $4.9 million. Foreign currency fluctuations also benefited the latest quarter's results.

Looking ahead to the third quarter, the company said it expects sales to decline year-over-year, but "with some moderation compared to the decline in the first half of the fiscal year."

In the year-ago quarter, the company booked sales of $6.14 billion. Analysts are targeting third-quarter revenue of $5.2 billion.

"The company believes demand in the Americas region is exhibiting recent signs of stability, while demand in Europe may decline further," Tech Data said.

Shares gained 91 cent, or 2.7 percent, to $35.01 in morning trading. Earlier, the stock hit a 52-week high of $37.75.