Investopedia: Overreaction May Make Tech Data Worth A Look

When a company operates in an industry with razor-thin margins, even the slightest disappointment can send investors into full flight. That, and a jumpy market to begin with, would seem like the best explanation for why Tech Data (Nasdaq:TECD) shares were punished so severely for what was not exactly a disastrous quarter. Although investors should approach this name with caution, value is value, and Tech Data may be worth a look.

First-Quarter Results - Europe Looking Soft
Tech Data reported that revenue rose 13% for the fiscal first quarter (and fell about 11% on a sequential basis). That missed the average estimate of $6.4 billion, and it seems as though analysts and institutions were particularly concerned about soft European consumer demand. Revenue from Europe rose 14% (in euros) from last year's level (and 18% in dollars), but it fell 18% on a sequential basis and looked to be weaker than expected by 2-4%. Business in the Americas was likewise better on a year-over-year basis (up 6%), but weaker than analysts had forecast.


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