Tech Data (TECD) Stock: Climbing On Strong Earnings

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Tech Data Corp TECD Stock News

Tech Data Corp (NASDAQ: TECD) is having an overwhelmingly strong start to the trading session today, and for good reason. The company announced its financial results for the third quarter, beating expectations and exciting investors. Of course, this led to the gains. Today, we’ll talk about:

  • The earnings results;
  • what we’re seeing from TECD stock; and
  • what we’ll be watching for ahead.

TECD Blows Away Earnings

As mentioned above, Tech Data is having a great day in the market today after releasing its financial results for the third quarter. Here’s what we saw from the report:

  • Earnings Per Share – In terms of earnings per share, the company did overwhelmingly well. During the third quarter, the company generated earnings in the amount of $2.96 per share. That figure not only beat analyst expectations, it showed incredible growth from the $0.97 per share reported in the third quarter of 2017.
  • Net Income And Sales – When it comes to net income and net sales, TECD also did incredibly well. During the third quarter, net income came to $114.2 million. That figure was up from $37.3 million a year ago. Net sales also rose 11% to $9.3 million in the quarter.

In a statement, Rich Hume, CEO at TECD, had the following to offer:

I am pleased to report that our teams delivered a strong Q3 performance with great execution across our three regions. Worldwide sales grew 11 percent and we achieved high double-digit non-GAAP operating income and earnings per share growth. In addition, we generated $155 million in cash from operations, earned an adjusted return on invested capital of 12 percent, paid down $100 million of debt and returned $44 million to our shareholders through share repurchases… Our Q3 results reflect the powerful combination of our end-to-end portfolio and strong execution by our global teams. They also validate the strategic role we play in the IT Supply chain – delivering high value through our end-to-end portfolio to channel partners across the broad spectrum of IT products and solutions.

What We’re Seeing From The Stock 

One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. In the case of Tech Data, the news proved to be overwhelmingly positive. After all, when we invest, we invest for growth and that’s exactly what the company showed they were doing through this earnings report. So, it’s not surprising to see that excited investors are pushing the stock for the top. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:37), TECD is trading at $85.29 per share after a gain of $11.61 per share or 15.76% thus far today.

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What We’ll Be Watching For Ahead

Moving forward, the iWatch Markets team will continue to keep a close eye on TECD. In particular, we’re interested in following the story surrounding the company’s continued growth as this report shows that they are doing a great job at it. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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