A poor economy, slowing demand and other factors contributed to missed earnings expectations for distributor Tech Data in its third quarter.
Despite reporting earnings of US$45.9 million on US$6.04 billion in sales which works out to $1.21 per diluted share, analysts had expected $1.33 per share. It was a decline of earnings of US$53.5 million on sales of US$6.59 billion in the same period one year ago.
“During our third quarter we continued to face weak macroeconomic environments and slowing demand, as well as challenges in our U.S. operations following the implementation of certain SAP modules in the second quarter,” said Tech Data CEO Bob Dutkowsky in a statement. “Our worldwide operating performance, which fell short of our plan and prior year, reflects the ongoing impact of these challenges.”
