Shares of Tech Data Corp. TECD, -13.72% took a 14% dive in active trade Thursday, after the distributor of technology products and services missed fiscal second-quarter profit expectations, provided a downbeat outlook and outlined a cost-cutting program. Volume of 1.2 million shares was nearly seven-times the full-day average. Net income for the quarter to July 31 rose to $75.9 million, or $1.97 a share, from $47.5 million, or $1.24 a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share came to $2.01, below the FactSet consensus of $2.11. Sales increased 10% to $8.89 billion, topping expectations of $8.73 billion, as Americas sales grew 7%, Europe sales rose 13% and Asia Pacific sales gained 5%. For the current quarter ending Oct. 31, the company expects sales of $8.7 billion to $9.0 billion, which surrounds the FactSet consensus of $8.85 billion, but the company's adjusted EPS guidance of $2.00 to $2.30 was below expectations of $2.39. Separately, Tech Data said it expects to incur one-time costs of $70 million to $80 million over the next 18 months to 24 months, as it implements a cost-cutting program aimed at saving $70 million to $80 million a year. The stock has plunged 22% year to date, while the S&P 500 SPX, -0.45% has gained 8.9%.
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