Tech Data Corp., an information technology products distributor, said Tuesday its fourth-quarter profit jumped 17 percent, topping Wall Street forecasts despite falling sales.
The company said it earned $58.6 million, or $1.17 per share, in the three months ended Jan. 31, up from $50.2 million, or 92 cents per share, in the year-ago quarter.
Analysts were expecting earnings of 73 cents per share, according to a Thomson Reuters poll.
Sales fell below analysts' expectations, however, dropping 12 percent to $5.71 billion from $6.48 billion. Analysts projected sales of $5.96 billion.
Tech Data said its gross margin improved, while selling, general and administrative expenses fell, contributing to better-than-expected earnings.
"We took prudent cost reduction actions throughout the year and continue to improve our inventory, pricing and freight management disciplines," Chief Executive Robert Dutkowsky said in a statement.
The company said it cut costs during the quarter by reducing headcount and cutting payroll expenses. The declining value of foreign currencies also helped trim costs.
For the full year, Tech Data posted earnings of $123.6 million, or $2.40 per share, compared with $108.3 million, or $1.96 per share, a year earlier. Net sales climbed to $24.08 billion from $23.42 billion.
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