TECD – Market expectations are for a material decline in Uniform ROA, but management is confident about their cloud business, gross profit, and margins

• Tech Data Corporation (TECD:USA) currently trades below historical averages relative to UAFRS-based (Uniform) Earnings, with a 10.0x Uniform P/E. At these levels, the market has bearish expectations for the firm, but management is confident about their cloud business, gross profit, and margins
• Specifically, management is confident when saying that they are pleased with the financial performance of their cloud business, and they are confident that gross profit increased 9% in the quarter. Furthermore, they are confident that their Asia Pacific operating margin improved 42bps and that they are on track to meet their long-term 50-50 capital strategy.