The 10-second takeaway
For the quarter ended April 30 (Q1), Tech Data missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share improved significantly.
Margins improved across the board.
Tech Data recorded revenue of $5.90 billion. The seven analysts polled by S&P Capital IQ predicted a top line of $6.20 billion on the same basis. GAAP reported sales were 6.9% lower than the prior-year quarter's $6.33 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.24. The seven earnings estimates compiled by S&P Capital IQ predicted $1.17 per share. GAAP EPS of $1.24 for Q1 were 20% higher than the prior-year quarter's $1.03 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 5.4%, 10 basis points better than the prior-year quarter. Operating margin was 1.4%, 20 basis points better than the prior-year quarter. Net margin was 0.9%, 10 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $6.02 billion. On the bottom line, the average EPS estimate is $1.19.
Next year's average estimate for revenue is $25.22 billion. The average EPS estimate is $5.59.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 91 members out of 103 rating the stock outperform, and 12 members rating it underperform. Among 33 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 30 give Tech Data a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Tech Data is hold, with an average price target of $57.08.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.