Tech Data Gains After Beating Third-Quarter Estimates

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Computer products distributor

Tech Data

(TECD) - Get Report

beat Wall Street's third-quarter earnings expectations, reporting net income, excluding charges, of $33.1 million, or 58 cents a share, down 30% from $47.2 million, or 82 cents a share, in the year-ago quarter. Analysts were expecting earnings of 51 cents a share, according to Thomson Financial/First Call.

Sales for the quarter were also down from last year, dropping 19% to $4.2 billion from $5.2 billion in the year-ago quarter. Software sales rose 10% for the quarter, and the company cut expenses by 7%, contributing to the better-than-expected earnings.

For the fourth quarter, Tech Data expects earnings of $33 million to $36 million, or 58 cents to 63 cents a share, on sales of $4.1 billion to $4.3 billion. Wall Street had been expecting earnings of 61 cents a share.

Shares of Tech Data were recently trading up 7% to $42.80 in premarket Instinet trading.