Tech Data has found itself in Wall Street’s good books after posting higher than anticipated profits for its fiscal second quarter.
The broadliner’s share price shot up 6.9 per cent after it unveiled a net profit of $7.2m for the three months to July 31, compared to a $155m loss a year earlier. Total revenues hiked 13.6 per cent to $5.6bn, thanks to strong US sales and the weak dollar.
The world’s second largest distributor, which works through the Azlan and Computer 20000 brands in the UK, enjoyed a sound quarter in Europe as revenues from the region leapt 3.4 per cent in local currencies to $2.7bn.
Revenues drawn from North and Latin America roared ahead 16.7 per cent to $2.9bn.
Excluding losses from the disposal of its subsidiaries in the Middle East and restructuring charges, European non-GAAP operating income stood at 0.18 per cent of sales.
Robert Dutkowsky, chief executive officer at Tech Data, said: “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.
“We delivered a significant year-over-year turnaround in our operating results in the European region with a 91 basis point improvement on a non-GAAP basis.”
Tech Data recently strengthened its European operations with the acquisition of Actebis Switzerland from parent Otto Group. The distributor said the purchase would make it the clear number two in the Swiss market.
Tech Data said it anticipates total third quarter revenues of $5.75bn to $5.9bn.
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