Original URL: http://www.channelregister.co.uk/2005/11/24/tech_data_fy2006_q3_earnings/
Tech Data beats the Street
Share jump
Posted in IT Channel, 24th November 2005 14:12 GMT
Free whitepaper – What Exchange can't do - and Dell can
Restructuring costs for Tech Data's European operations meant a profits fall for the distie giant in Q3.
Net income fell 40 per cent to $23m or 40c a share thanks to $4.8m in restructuring charges and $3.2 million of consulting costs related to the restructuring. Strip out the one-off charges and profit climbs to 53 cents a share, rather better than the consensus analyst forecast of 46c a share for the quarter.
Wall Street reacted favourably with Tech Data shares leaping 14 per cent yesterday, its biggest one day rise since 2001, Reuters reports (http://today.reuters.com/investing/financeArticle.aspx?type=hotStocksNews&storyID=URI:urn:newsml:reuters.com:20051122:MTFH24884_2005-11-22_15-46-28_N22666044:1).
Net sales for the three months were $5.1bn, 6.6 per cent up on same time last year. Tech Data's earnings statement is here (http://phx.corporate-ir.net/phoenix.zhtml?c=115264&p=irol-newsArticle&ID=785374&highlight=). ®