Tech Data Corporation (NASDAQ:TECD) saw its shares leap, after the company announced its financial results for the first quarter ended April 30
The Clearwater, Fla., company told investors Thursday net sales decreaed 2% over the prior-year quarter to $8.5 million. Gross profit shrank to $509.4 million from $523.1 million, tailing off 3%.
Operating income, however, chimed in at $97.6 million, from $70.5 million in the prior-year quarter, an improvement of 38%. Net income screamed 64% higher to $55.4 million from $33.7 million.
To quote CEO Rich Hume, “We are pleased to report a solid start to Tech Data’s fiscal year 20. In Q1, we delivered double-digit earnings per share growth, generated positive cash flow and earned an industry-leading return on invested capital – all while making good progress on our strategy and continuing to invest for the future. Our worldwide teams executed well in the quarter, despite market uncertainty.
“Looking ahead, although IT market growth has slowed somewhat from the year-ago levels, demand continues to be solid, and we remain positive on the overall IT spending outlook.”
For the quarter ending July 31, 2019, the Company anticipates: Worldwide net sales to be in the range of $8.6 billion to $8.9 billion; EPS to be in the range of $1.53 to $1.83 and non-GAAP EPS to be in the range of $2.15 to $2.45, and an effective tax rate in the range of 24% to 26%.
Shares acquired $2.17, or 2.4%, to $93.81
