LONDON, UK / ACCESSWIRE / June 23, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Tech Data Corp. (NASDAQ: TECD), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=TECD, following the Company's release of its financial results for the first quarter fiscal 2018 (Q1 FY18) on June 01, 2017. The Clearwater, Florida-based Company reported a 29% y-o-y growth in its net sales, while its non-GAAP diluted EPS surged 78% y-o-y, beating market consensus estimates. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
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Earnings Reviewed
During the three months ended on April 30, 2017, Tech Data reported net sales of $7.66 billion, compared to the $5.96 billion recorded at the end of Q1 FY17. Net sales numbers topped market expectations of $7.32 billion. The Company's recent acquisition of the technology solutions business from Avnet, Inc. (NYSE: AVT) added to its net sales during the quarter.
The information technology products distributor reported GAAP net income of $30.65 million, or $0.82 per diluted share, in Q1 FY18 versus $33.37 million, or $0.94 per diluted share, in the prior year's comparable quarter. The Company's non-GAAP net income for Q1 FY18 were $70.06 million, or $1.87 per diluted share, compared to $37.04 million, or $1.05 per diluted share, in the past year's comparable quarter. Meanwhile, Wall Street had expected the Company to report adjusted net income of $1.39 per diluted share.
Operating Metrics
In the reported quarter, Tech Data's cost of products sold came in at $7.21 billion versus $5.66 billion in the previous year's same quarter. The Company's gross profit during Q1 FY18 was $457.09 million, or 5.96% of net sales, compared to $298.61 million, or 5.01% of net sales, in the year ago same period. Furthermore, the Company non-GAAP operating income came in at $123.21 million, or 1.61% of net sales, during Q1 FY18 compared to $57.56 million, or 0.97% of net sales, in Q1 FY17.
Geographic Segment
The Company's Americas sales increased to $3.47 billion in Q1 FY18 from $2.39 billion in Q1 FY17. Furthermore, the segment's non-GAAP operating income increased to $78.50 million, or 2.26% of the segment's sales, in Q1 FY18 from $31.41 million, or 1.32% of the segment's sales, in Q1 FY17.
Europe region net sales for the reported quarter were $4.01 billion in Q1 FY18 compared to $3.58 billion in the previous year's comparable quarter. The segment's non-GAAP operating income for Q1 FY18 came in at $44.12 million, or 1.10% of the segment's sales, versus $29.81 million, or 0.83%, in Q1 FY17.
For Q1 FY17, net sales in the Asia/Pacific region stood at $188.31 million with non-GAAP operating income of $5.20 million, or 2.76% of the segment's sales.
Cash Flow & Balance
During Q1 FY18, Tech Data's net cash flow provided by operating activities was $224.36 million compared to $275.76 million in the year ago same quarter. At the close of books on April 30, 2017, Tech Data had cash and cash equivalents balance of $861.54 million versus $2.13 billion at the close of books on January 31, 2017. Additionally, the Company's long-term debt increased to $1.80 billion as on April 30, 2017, from $989.92 million as on January 31, 2017.
The Company's return on invested capital (ROIC) for the trailing twelve months through Q1 FY18 was 13% compared with 14% for the twelve months through Q1 FY17.
Earnings Guidance
In its guidance for quarter ending July 31, 2017, Tech Data expects worldwide net sales to be in the range of $8.55 billion to $8.80 billion. Additionally, the Company forecasts non-GAAP EPS to be in the range of $1.95 to $2.08.
Stock Performance
On Thursday, June 22, 2017, the stock closed the trading session at $101.00, climbing 1.47% from its previous closing price of $99.54. A total volume of 359.80 thousand shares have exchanged hands. Tech Data's stock price surged 9.58% in the last three months, 13.94% in the past six months, and 23.17% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have rallied 19.27%. The stock is trading at a PE ratio of 18.78. At Thursday's closing price, the stock's net capitalization stands at $3.90 billion.
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