Shares of Tech Data Corp. (TECD, Financial) gained nearly 10% on Tuesday after the company reported financial results for the quarter ended Oct. 31. Revenue grew 40.8% to $9.14 billion, while earnings per share advanced to $2. The company beat EPS expectations by eight cents and revenue estimates by $30 million.
By geographic segment, net sales in the Americas were $4 billion and registered an increase of 53% compared to the same quarter a year ago. In Europe, net sales were $4.8 billion, a 25% increase from the prior-year quarter. In Asia Pacific, net sales were $0.3 billion.
Chairman and CEO Robert M. Dutkowsky highlighted the company's earnings power and cash flow.
“For the first time in Tech Data's history, quarterly sales surpassed $9 billion, and through pricing discipline and strong cost controls, we delivered solid non-GAAP earnings per share," he said. "In addition, we generated $70 million of cash from operations, paid down $350 million of our debt, reflecting our strong commitment to deleverage the company, and earned an adjusted return on invested capital for the trailing twelve-month period well in excess of our weighted average cost of capital. We continue on our path to building the IT distributor of the future, one with breadth, specialized skills and extensive capabilities to help our customers and vendor partners capitalize on growth opportunities across the computing continuum."
On the other hand, shares of Momo Inc. (MOMO, Financial) fell more than 16% on Tuesday despite announcing good financial results for the third quarter. EPS of 45 cents beat estimates by seven cents. Revenue of $354.45 million beat expectations by $15.16 million and increased 125.7% year over year.
"Momo 8.0 allows us to further diversify the social and entertainment offerings on the platform," Chairman and CEO Yan Tang said. "We are confident that Momo will continue to drive user growth through product innovations, use case expansions as well as a more result driven marketing plan”.
Disclosure: The author holds no positions in any stocks mentioned.
