Tech Data Corp. (NASDAQ:TECD) said Thursday that its second-quarter profit hit a quarterly record, as the information technology market expanded in its regions, and revenue improved on a widened customer- and vendor-base.
The technology products maker posted net income of $40.9 million, or 82 cents a share, up 16% from $35.2 million, or 70 cents a share, in the same quarter last year, and landing ahead of average analyst estimates of 78 cents, according to a Thomson Reuters poll.
Revenue for the Clearwater, Florida-based company was $5.5 billion, compared with $5.2 billion a year ago, and beating the Street’s view of $5.44 billion.
Tech Data CEO Robert M. Dutkowsky said the results “clearly demonstrate” the company’s strategic focus on improving profitability and return on capital, which he attributed to “responsible growth” and diversification into specialized offerings.
The IT market grew at a good pace in the company’s two regions, he said, allowing them to focus on net revenue growth, which was driven primarily by gained customers and vendors.
Also in the quarter, the company announced three acquisitions and bought back $170 million of stock under its share repurchase program.