Tech Data "Cautiously Optimistic" as Earnings Rise
Channel distribution giant Tech Data Corp. reports its quarterly profit rose 39 percent, thanks to gross margin improvements and a boost in worldwide sales. Good news, but can the flush times continue? Companies like Tech Data are doing a good job of improving their inventory management and driving down costs, but they still can be overwhelmed by the sliding economy, especially if it impacts IT products and services.
Looking ahead, CEO Robert Dutkowsky says in a statement that the broader economic environment "remains an important consideration, but we remain cautiously optimistic." Sales and profits beat quarterly Wall Street estimates this time around. Looking forward, the company projects $5.65 to $5.8 billion in sales, smack in the middle of consensus estimates. Tech Data's numbers show that at least for the moment, it's still good for the channel.