Tech Data Corp reported a quarterly profit that handily beat expectations on stronger foreign currencies and a 30 percent growth at its European business, and forecast a mid-single digit sales growth for the third quarter.

The technology products distributor said potential charges related to tax probes at its Brazil unit could hurt results in the future.

Tech Data, which distributes products made by Apple Inc and Hewlett-Packard Co among others, said it may see some slowdown in spending, but expects overall demand for technology products to remain stable.

I don't think anything is typical anymore in this environment, Chief Executive Bob Dutkowsky said on a conference call with analysts.

Smartphones and tablets sold well despite the macroeconomic issues plaguing Europe, while servers, notebooks and desktops were top sellers in the commercial space.

The company is not expecting a rebound in federal spending in the Americas, but expects stable spending at its healthcare specialty business.

Tech Data's third-quarter forecast suggests a revenue level modestly above the current consensus of $6.6 billion, Barclays Capital analyst Ben Reitzes said in a note.

Last month, rival Arrow Electronics forecast third-quarter earnings below analysts' view, hurt by lackluster technology spending.

May-July net income at Tech Data rose 22.5 percent to $50.1 million, or $1.10 a share, while sales rose 18 percent to $6.45 billion, from the year-ago period.

The company also said it has authorized a share repurchase program for up to $100 million of the company's common stock.

Shares of the Clearwater, Florida-based company pared early gains and were down 1.6 percent at $41.83 in midday trade on Nasdaq, amid 4 percent fall in broader market.

The stock had touched a life high of $54.25 on April 27 after Tech Data signed new distribution deals with Cisco Systems Inc.

(Reporting by Sruthi Ramakrishnan; Editing by Saumyadeb Chakrabarty and Gopakumar Warrier)

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