SYNNEX Earnings: Is This the Wrong Direction?

SYNNEX Corp. (NYSE:SNX) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares were up, but are now down 1%.

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SYNNEX Corp. Earnings Cheat Sheet

Results: Net income decreased -13.1% to $43.6 million ($1.16 per diluted share) in the quarter versus a net gain of $50.17 million in the year-earlier quarter.

Revenue: Decreased 2.67% to $2.77 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: SYNNEX Corp. reported adjusted net income of $1.16 per share. By that measure, the company beat the mean analyst estimate of $1.04. It beat the average revenue estimate of $2.76 billion.

Quoting Management: “I am pleased to report solid quarterly earnings even as compared to the prior year’s exceptional profits from the hard disk drive shortage. Strong operational execution within the core Distribution Segment aligned well with rapid expansion into adjacent, higher margin service and solution businesses,” stated Kevin Murai, President and Chief Executive Officer, “Also our GBS Segment’s organic revenue growth continues to accelerate driven by continued investment and increasing momentum in our rapidly growing Concentrix business.”

Key Stats:

Revenue increased 7.3% from $2.58 billion in the previous quarter. Net income increased 24.08% from $35.14 million in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.88 to a profit $0.89. For the current year, the average estimate has moved up from a profit of $3.87 to a profit of $3.88 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)

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