uploads///TECH DATA

Why Tech Data Rose 22% Yesterday

By

Nov. 30 2018, Updated 1:00 p.m. ET

Stock rose on earnings beat

Shares of Tech Data (TECD) rose 22% yesterday to close at $89.89. The company announced its third quarter of fiscal 2019 earnings (for the year ending in January) and reported earnings per share of $3.02, which was 38% above analyst estimates of $2.19 per share. In the third quarter of fiscal 2018, TECD reported earnings of $2.00.

The company reported revenue of $8.92 billion, a fall of 2.3% year-over-year, compared to $9.13 billion in the same period last year. Despite Tech Data’s stellar rise yesterday, the stock has still declined 8.3% this year.

Shares of Tech Data have risen 27.2% this month and 25.6% since the start of October.

Article continues below advertisement

Revenue expected to decline marginally in fiscal 2019

Analysts expect Tech Data’s revenue to decline marginally, by 0.4% to $36.63 billion, in fiscal 2019. It should then rise 2% to $37.36 billion in fiscal 2020. The company’s earnings per share are, however, expected to rise 7.5% to $9.79 in fiscal 2019 and 8.5% to $10.62 in 2020.

The EPS are expected to grow at a compound annual growth rate of 11% over the next five years. Tech Data has a forward price-to-earnings ratio of 11.2x—which doesn’t look too expensive, considering its robust earnings growth.

Advertisement

More From Market Realist

  • Honeywell sign
    Earnings Report
    CNBC Pro Stocks to Buy Before Q1 Earnings
  • Men walking by Morgan Stanley headquarters
    Financials
    Morgan Stanley’s (MS) Stock Forecast Before Q1 Earnings
  • Carnival cruise ship sailing
    Consumer
    Carnival's (CCL) Stock Forecast Before Q1 Business Update
  • GameStop store
    Consumer
    GME's Earnings Are Coming: Will It Be Mayday for Shorts or WallStreetBets?
  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.