NEW YORK (TheStreet) -- Tech Data (TECD) - Get Report stock is dropping by 10.41% to $67.85 in late afternoon trading on Tuesday, after the company's fiscal 2016 third quarter earnings results missed analysts' expectations.
Before the market open on Tuesday, the Clearwater, FL-based technology products distributor reported earnings of $1.28 per share. Revenue declined to $6.42 billion, down from $6.76 billion for the year-ago period.
Analysts surveyed by Zacks Investment Research were expecting the company to report earnings of $1.33 per share on revenue of $6.52 billion for the most recent quarter.
Additionally, Tech Data projected fourth quarter revenue of $7.05 billion to $7.25 billion.
"Tech Data's performance through the first nine months of the fiscal year is a testament to our company's strengths, namely, our diversified customer and product portfolios, strong vendor relationships, state-of-the-art global IT platform, and our teams' ability to effectively respond to the demands of the ever-changing IT market," CEO Robert Dutkowsky said in a statement.
So far today, 1.56 million shares of Tech Data have traded, versus its 30-day average of about 401,000 shares.
Separately, TheStreet Ratings team rates TECH DATA CORP as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
We rate TECH DATA CORP (TECD) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income, attractive valuation levels, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company shows low profit margins.
You can view the full analysis from the report here: TECD
Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.