Tech Data trades up on strong quarter
Technology services provider 'cautiously optimistic' about economy, offering upbeat sales forecast.
NEW YORK (CNNMoney.com) -- Shares of technology products and services distributor Tech Data rose in midday trading Tuesday after reporting strong income growth for the fourth quarter and a sales outlook slightly above analysts' estimates.
"As we proceed into fiscal 2009, the economic environment remains an important consideration, but we remain cautiously optimistic," said Tech Data chief executive Robert Dutkowsky in a statement.
Tech Data said net income for the quarter ended Jan. 31 rose 39% to $50.2 million, or 92 cents per share, from $36.1 million, or 66 cents per share, a year earlier.
Excluding charges related to the elimination of its branch in the United Arab Emirates and other one-time items, the company made $52.2 million, or 96 cents per share, a 41% increase over $37.1 million, or 67 cents per share last year.
Analysts polled by Thomson Financial had expected earnings per share of 88 cents.
Tech Data said it expects sales in the first quarter, ending in April, to be between $5.65 billion and $5.8 billion. The midpoint is slightly above the $5.71 billion Thomson consensus forecast.
The company said total sales grew 5.8% in the fourth quarter to $6.5 billion. Sales in North and South America, which make up 42% of total sales, grew 8.4% compared to the year-earlier quarter.
For the full fiscal year, Tech Data (TECD, Fortune 500) reported net income of $108.3 million, or $1.96 a share, compared with a loss of $97 million, or $1.76 a share, including restructuring and other charges. Sales rose 9.2% to $23.4 billion.