Boston, MA 05/29/2014 (wallstreetpr) – Wholesale distributor of technology products, Tech Data Corp (NASDAQ:TECD) announced a fall in profit for the first quarter hurt by stock-based compensation charges and weak margins. However, its adjusted profit rose on the back of a 9% growth in the top line. None-the-less, the company’s profit fell shy of estimations.
1Q Results
The company reported net income of $13.5 million or 35 cents a share for the first quarter, down approximately 25% from $17.8 million or 47 cents a share in the year earlier period. On an adjusted basis, excluding special items, net income advanced 10.4% to $27.7 million from $25.1 million, while earnings rose 9.1% to 72 cents a share from 66 cents a share in the year-ago quarter. On average, 9 analysts’ estimated Tech Data Corp to report earnings of 92 cents a share.
Net sales advanced 9.5% to $6.728 billion from $6.147 billion in the previous year quarter. Excluding currency impact, net sales would have grown about 6%. Wall Street analysts, on average, predicted Tech Data Corp (NASDAQ:TECD) to generate revenue of $6.48 billion.
While net sales from Europe increased 10% to $4.3 billion representing a contribution of about 63% to overall revenue, the Americas’ net sales grew 8% to about $2.5 billion representing about 37% of the contribution to total sales.
Other Metrics
Gross profit rose marginally to $335.3 million or 4.98% of net sales from $322.4 million or 5.24% of net sales in the year-ago quarter, while selling, general and administrative costs increased to $291.6 million or 4.33% of net sales from $283.4 million or 4.61% of net sales in the year earlier quarter. On an adjusted basis, S,G&A were 4.22% of net sales compared to 4.49% in the previous year quarter
Outlook
Moving ahead, Tech Data Corp (NASDAQ:TECD) sees sales grow in the low to mid-single digits in the Europe and Americas during the second quarter. The company does not see any change in gross margin from the recent levels.
