Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Tech Data
So what: EPS of $1.03 grew 17% year over year, but came in short of the consensus estimate of $1.05. Revenue of $6.33 billion grew 13% year over year (10% adjusted for currency effects) but came in short of the consensus forecast of $6.4 billion.
Now what: For the current quarter outlook, management said only that it expects "year-over-year organic sales growth," hinting at potentially tepid sales. For the year, management said it's confident in Tech Data's "ability to achieve our stated goals of double-digit operating income and earnings growth." With first-quarter sales a little weaker than expected and lukewarm guidance, it appears TECD may have trouble meeting the consensus forecast of 14% EPS growth in 2011.
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