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CLEARWATER — Despite $6.3 billion in quarterly revenues and $48.7 million in profits, investors were bearish on Tech Data Corp. (symbol: TECD) following the release of its financial results Monday morning.
Shares were down more than 10% in early Monday trading, to a per-share value of roughly $48. The stock had closed at $53.60 on Friday.
Tech Data's quarterly revenues were up roughly 13% over the year, and its net income is 7% larger than it was in the first quarter of 2010. Its quarterly operating income was $75.7 million for the quarter, up 9%.
“Our worldwide team's focus on responsible growth and gross margin management, combined with stronger foreign currencies, resulted in sales and earnings growth that was in line with our expectations,” says CEO Robert Dutkowsky in a prepared statement.
In the statement, Dutkowsky highlighted two other Tech Data achievements from the quarter: a 14% return on invested capital, and the repurchasing of $51 million of its own common stock.
Tech Data is currently holding $808 million in cash reserves, against $483 million in total debt. Based on the current value of its shares, Tech Data's market capitalization is roughly $2.25 billion.
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