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Tech Data Corp (TECD - Free Report) announced record quarterly results last week, which were ahead of analyst expectations.

Thanks to subsequent estimate revisions you can still get shares of this Zacks #1 Rank (Strong Buy).

Company Description

Tech Data Corp is a global distributor of technology products from IT hardware and software producers. End users range from small businesses to large enterprises and government agencies.

3 Records Set

On Nov 22 Tech Data announced record quarterly marks for sales, net income and earnings per share. Sales were up 9.2% year-over-year to $6.2 billion. The top line was up 12.6% on a sequential basis.

Net income jumped 17% to $50.5 million, or $1.07 per share. The Zacks Consensus Estimate was 95 cents per share, making this the eighth consecutive earnings surprise.

Positive Comments

After Tech Data's CEO commented on the growth seen through both acquisition and organically, he said the company was on an "accelerated track to achieve our 3-year profitability and return on capital employed goals."

Estimates are Up

Analysts have all raised their forecast for fiscal 2011 and 2012. The Zacks Consensus Estimate is up 25 cents, to $4.18 this year. Next year's projections are up 35 cents, to $4.71. These levels represent annual growth rates of 22% and 13%.

Higher estimates have kept valuations very attractive as well. Shares of TECD are trading at less than 11 times forward estimates. The PEG ratio is right on the cusp of value, at 1.1 times.

The Chart

Tech Data popped on the earnings release, but just could not make it past the recent high. You can see there was a rush of profit taking. However, as long as shares stay above the recent low, there is no reason to doubt that the growth and value will take shares higher soon.

Tech Data, Corp. - ticker TECD >

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