Tech Data Corporation (TECD - Free Report) posted robust third-quarter fiscal 2019 results, wherein both the top and bottom lines surpassed the Zacks Consensus Estimate. Results were backed by double-digit growth in all the three regions coupled with improvement in operating margins.
The company reported adjusted earnings of $3.02 per share in the third quarter of fiscal 2019. The figure not only surpassed the Zacks Consensus Estimate of $2.19 but also increased 51% on a year-over-year basis. Moreover, net sales of $9,340 million increased 11% year over year and surpassed the consensus mark of $8,875 million. Net sales rose 12% on a constant-currency (cc) basis.
Net sales from the Americas (44.3% of revenues) rose 12.9% to $4.1 billion. Sales from Europe (52.7% of revenues) grew 8.9% to $4.9 billion and from Asia-Pacific (3% of revenues) increased 5.9% to $282 million.
Tech Data Corporation Price, Consensus and EPS Surprise
Gross margin contracted 27 basis points (bps) from the year-ago quarter to 6%. Non-GAAP selling, general & administrative (SG&A) expenses as a percentage of revenues decreased 67 bps to 3.95% in the reported quarter.
Adjusted operating margin expanded 40 bps to 2%. Segment wise, operating margin expanded 68 bps for the Americas, 16 bps for Europe and 6 bps for Asia-Pacific.
Balance Sheet and Cash Flow
As of Sep 30, 2018, Tech Data had cash and cash equivalents of approximately $646.5 million, long-term debt of $1.3 billion and total stockholders’ equity of $2.8 billion.
During the quarter, the company bought back about 621,000 shares for $44 million. Tech Data generated cash from operations of $155 million in the reported quarter.
Tech Data issued fourth-quarter fiscal 2019 view. It expects adjusted earnings of $3.90-$4.20 per share with tax rate of 24-26%.
We note that shares of this Zacks Rank #1 (Strong Buy) company have gained 28.4% in the past month, outperforming the industry’s growth of 3.8%.
Looking for More? Check These Solid Picks
Boot Barn Holdings (BOOT - Free Report) , with long-term earnings per share growth rate of 23%, sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Canada Goose Holdings (GOOS - Free Report) , with long-term earnings per share growth rate of 31.3%, carries a Zacks Rank #2 (Buy).
Children’s Place, Inc. (PLCE - Free Report) , with long-term earnings per share growth rate of 8%, carries a Zacks Rank #2.
3 Medical Stocks to Buy Now
The greatest discovery in this century of biology is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating revenue, and cures for a variety of deadly diseases are in the pipeline.
So are big potential profits for early investors. Zacks has released an updated Special Report that explains this breakthrough and names the best 3 stocks to ride it.
See them today for free >>