Shares of IT product distributor Tech Data (NASDAQ:TECD) were up 2% in pre-market trading Tuesday after the company more than doubled its net income and posted record Q3 revenue. Adjusted net income of $40.9 million ($0.73/share) was up 128% from last year's $18 million ($0.33/share), well ahead of the $0.60/share analysts polled by Reuters expected. Net sales of $5.92 billion, up 9.1% from $5.43 billion, were a record for the quarter, and beat analyst estimates of $5.88 billion. "Steady market conditions during the quarter... drove record third-quarter net sales and a significant improvement in operating income year-over-year. Our European operations continue to strengthen and gain traction in the marketplace," CEO Robert Dutkowsky said (full earnings call transcript later today). Gross margin was up 23 basis points to 4.79% from last year, for which the company credited "solid improvements in the company's pricing and inventory management practices in Europe." Looking forward, Tech Data said it expects Q4 sales of $6.35 to $6.5 billion, weaker than the $6.52 billion analysts had been looking for. Shares of Tech Data's number-one competitor, global powerhouse IT distributor Ingram Micro (NYSE:IM), are up 1.3% over the past three months, while Tech Data's shares have languished, falling almost 11%. "In contrast to its largest competitor, Ingram Micro, Tech Data is making no plans to expand into Asian markets. This will put the company at a disadvantage in terms of global scale," Morningstar analysts told investors in an Oct. 25 note.
Seeking Alpha's news briefs are combined into a pre-market summary called Wall Street Breakfast. Get Wall Street Breakfast by email -- it's free and takes only seconds to sign up.