- Tech Data (NASDAQ:TECD) shares continue to sink after this morning’s Q4 results beat on EPS and revenue but included downside revenue guidance. Q1 guidance has revenue from $8B to $8.3B (consensus: $8.52B) and EPS from $1.30 to $1.60 (may not be comparable to consensus of $1.97).
- During the earnings call, management said that “the guidance reflects the increasingly competitive market environment" that started in the latter part of Q2.
- Tech Data also found out late last FY that a few key vendors would alter their existing programs due to the constricted environment, which would lower margins for distribution partners.
- Non-GAAP operating income revised from flat to low-single-digits in FY1.
- Tech Data expects the new revenue recognition standards to reduce sales by 7% this year.
- Press release
- Earnings call transcript
- Tech Data shares are down 18.2%.
- Previously: Tech Data beats by $0.01, beats on revenue (March 8)
- Now read: Tech Data Corporation 2018 Q4 - Results - Earnings Call Slides
Original article