Free Post Earnings Research Report: Tech Data’s Net Sales Surged 22%; EPS Advanced 6%

LONDON, UK / ACCESSWIRE / June 29, 2018 /

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Earnings Highlights and Summary

For the first quarter ended April 30, 2018, Tech Data’s net sales surged 22% to $8.55 billion compared to $7.02 billion in Q1 FY18, primarily driven by changes in foreign currency exchange rates and an additional month of Technology Solutions’ (TS) sales. The Company’s revenue numbers beat analysts’ estimates of $8.18 billion.

During Q1 FY19, Tech Data’s gross profit was $523.1 million, reflecting an increase of 14% compared to $457.1 million in Q1 FY18, primarily attributed to an additional month of TS results and changes in foreign currency exchange rates. As a percentage of net sales, the Company’s gross profit was 6.12% in the reported quarter compared to 6.51% in the prior year’s same quarter.

For Q1 FY19, Tech Data’s selling, general, and administrative expenses (SG&A) were $422.4 million, or 4.94% of net sales, compared to $352.6 million, or 5.02% of net sales, in Q1 FY18. The Company’s non-GAAP SG&A were $399.1 million in the reported quarter, up 20% versus the prior year’s comparable quarter. As a percentage of net sales, Tech Data’s non-GAAP SG&A were 4.67% in Q1 FY19 compared to 4.75% in Q1 FY18.

Tech Data’s worldwide operating income was $70.5 million, or 0.82% of net sales, in Q1 FY19 compared to $75.1 million, or 1.07% of net sales, in Q1 FY18. The Company’s non-GAAP operating income was $124.1 million in the reported quarter, up 1% compared to the year ago corresponding period. As a percentage of net sales, Tech Data’s non-GAAP operating income was 1.45% in Q1 FY19 compared to 1.75% in Q1 FY18.

For Q1 FY19, Tech Data reported a net income of $33.7 million, or $0.87 per diluted share, compared to $30.7 million, or $0.82 per diluted share, in Q1 FY18. The Company’s non-GAAP net income was $70.8 million, or $1.84 per diluted share, in the reported quarter compared to $1.87 per diluted share in the year earlier same quarter. Tech Data’s earnings numbers exceeded Wall Street’s estimates of $1.84 per share.

Cash Matters

During Q1 FY19, Tech Data’s net cash used by operations was $567 million. The Company’s return on invested capital was 4% for the trailing twelve months compared to 11% in the prior year. Tech Data’s adjusted return on invested capital was 11% for the trailing twelve months compared to 13% in the year ago.

Business Outlook

For the second quarter ending July 31, 2018, Tech Data is forecasting worldwide net sales to be in the range of $8.6 billion to $8.9 billion. The Company is expecting earnings per share to be in the band of $1.13 to $1.43 and non-GAAP earnings per share to be in the range of $1.95 to $2.25.

For the second quarter ending July 31, 2018, and full fiscal year ending January 31, 2019, the Company anticipates its effective tax rate to be in the band of 25% to 27%.

Stock Performance Snapshot

June 28, 2018 – At Thursday’s closing bell, Tech Data’s stock ended the trading session flat at $82.69.

Volume traded for the day: 225.08 thousand shares.

Stock performance in the last month – up 0.35%

After yesterday’s close, Tech Data’s market cap was at $3.22 billion.

Price to Earnings (P/E) ratio was at 14.92.

The stock is part of the Services sector, categorized under the Computers Wholesale industry. This sector was up 0.4% at the end of the session.

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