Tech Data Corp. (TECD), which recently announced $100 million share buyback, is seeing bullish earnings forecasts on a solid fiscal third-quarter. The full-year Zacks Consensus Estimate of $3.17 per share climbed from $2.84 over the past month.

Company Description

Tech Data distributes technology products for more than 125,000 IT providers in over 100 countries, including the United States, Canada, Europe and Latin America. The company provides end user support to small and medium businesses, large companies and government agencies. Tech Data generated $24.1 billion in net sales for its fiscal year ended January 31, 2009.

Recent Events

The company recently announced a $100 million share buyback, noting that since 2005, the company has completed $400 million in share repurchases.

“We are very pleased to announce another $100 million share repurchase program,” said Robert M. Dutkowsky chief executive officer, Tech Data Corporation. “Our financial position and cash flow remain very strong and this program underscores the confidence our Board has in Tech Data’s long-term business opportunities. Alongside the repurchase program we will continue to evaluate appropriate investments in existing operations as well as strategic acquisition alternatives that drive shareholder value.”

Solid Earnings

In late November, Tech Data posted fiscal third-quarter earnings of 84 cents per share, surpassing last year’s 37 cents and exceeding the Zacks Consensus Estimate by 18%. Net sales slipped 8% year-over-year.

Management stated that third-quarter results exceeded the company’s expectations for the fourth consecutive quarter.

Bullish Forecasts

Analysts polled by Zacks are upbeat on TECD’s earnings. The current full-year Zacks Consensus Estimate of $3.17 per share climbed from $2.84 over the past month. For the following year, projections of $3.52 per share are above last month’s $3.10.

Value Fundamentals

Tech Data is a Zacks #1 Rank (strong buy) stock. It has a price-to-book ratio of 1.1 and a forward P/E of 14.3.

Alex Kolb is the Growth & Income Stock Strategist for Zacks.com. He also writes the popular daily commentary column for the ZacksElite.com service. Zacks Investment Research