- Tech Data (TECD -18.3%) falls sharply after the company's guidance fell short of expectations.
- The company expects Q1 revenue of $8.0B to $8.3B vs. $8.56B consensus.
- CFO Chuck Dannewitz explained the reason for the light numbers on the earnings conference call (transcript).
- Dannewitz: "Our Q1 guidance reflects the increasingly competitive market environment that we began to experience in the latter portion of last year’s Q2 and that continued through the remainder of fiscal year ’18. In addition, late in fiscal year ’18 we were notified by a few key vendors that they intend to alter their programs to align more closely to their current operating environments. The impact of these changes results in lower margin opportunities for their distribution partners. Some of these changes began to take effect beginning in Q4 of fiscal ’18 and will roll out over the course of fiscal year ’19."
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