Aug 21 (Reuters) - Technology products distributor Tech Data Corp’s quarterly profit fell much short of analysts’ estimates, pulled down by a stronger dollar and a fall in margins, and the company forecast declining third-quarter sales in the Americas.
Shares of the Clearwater, Florida-based company were set to open 6 percent lower on Tuesday after closing at $52.15 on the Nasdaq on Monday.
The company expects a mid-single digit decline in sales in its Americas region, which contribute about 40 percent to total sales, in the third quarter. Sales are expected to be hurt by its exit of Brazil and Colombia operations and a weak economic global economy, the company said.
Net income attributable to shareholders fell to $34.5 million, or 88 cents per share, in the second quarter from $50.1 million, or $1.10 per share, a year earlier.
Second-quarter gross margins fell to 5.05 percent from 5.28 percent a year earlier, hurt by its product mix coupled with a tougher pricing environment in its Americas (North America and Latin America) and European regions, the company said.
Revenue fell 8 percent to $5.96 billion.
Analysts on average had expected earnings of $1.17 per share on revenue of $5.81 billion, according to Thomson Reuters I/B/E/S.