Tech Data 4th-quarter profits rise thanks to weak dollar; 1st-quarter growth seen below views

Tech Data 4Q profit up; 1Q growth seen subpar

CLEARWATER, Fla. — Information technology products distributor Tech Data Corp. said Tuesday its fourth quarter net profit rose 23 percent thanks to the weak dollar and a one-time tax benefit.

Net income in the three months to Jan. 31 rose to $70 million, or $1.35 per share, from $57 million, or $1.14. The company said a tax ruling caused a net benefit of $5.4 million, or 10 cents per share.

Revenue rose 10 percent to $6.28 billion from $5.71 billion a year ago. Tech Data said 8 percentage points of the gain was due to the strengthening of foreign currencies against the dollar.

Adjusted for the tax benefit, the company earned $1.25 per share, beating the expectations of analysts polled by Thomson Reuters, who expected $1.01 per share on $6.03 billion.

Looking ahead, the company said if recent signs of improving demand continue, net sales will rise by mid-single-digit percentages compared to the previous year, but that was lower than the 10 percent rise analysts were expecting.

Shares fell $2.90, or 6.5 percent, to $41.93 in afternoon trading Tuesday.

For the full year, Tech Data said net profit rose 54 percent to $180 million, or $3.54 per share, from $117 million, or $2.28 per share, a year earlier. Revenue fell 8 percent to $22.10 billion from $24.08 billion.