Systemax Inc. Earnings Cheat Sheet: Beats Wall Street Expectations

Systemax Inc. (NYSE:SYX) reported net income above Wall Street’s expectations for the second quarter. Systemax, Inc. is mainly a direct marketer of brand name and private label products. Its operations are organized in three reportable business segments: Technology Products, Industrial Products and Software Solutions.

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Systemax Earnings Cheat Sheet for the Second Quarter

Results: Net income for Systemax Inc. rose to $15.6 million (42 cents per share) vs. $9.4 million (25 cents per share) in the same quarter a year earlier. This marks a rise of 64.6% from the year earlier quarter.

Revenue: Rose 8.2% to $872.2 million from the year earlier quarter.

Actual vs. Wall St. Expectations: SYX beat the mean analyst estimate of 31 cents per share. Analysts were expecting revenue of $886 million.

Quoting Management: Richard Leeds, Chairman and Chief Executive Officer, said, “We delivered solid top line growth in the quarter.Our business to business operations continue to perform well and once again led our performance as customers update their IT infrastructure. In addition, the Industrial Products group had another outstanding quarter, delivering 27% revenue growth as we continue to execute on our growth initiatives in this segment.Consumer channel sales were flat, reflecting a very competitive consumer technology market, particularly on the web.However, our retail stores once again showed solid growth.”

Key Stats:

Revenue has risen the past four quarters. Revenue increased 1.6% to $929.9 million in the first quarter. The figure rose 7.2% in the fourth quarter of the last fiscal year from the year earlier and climbed 14.4% in the third quarter of the last fiscal year from the year-ago quarter.

The company has now beaten estimates the last two quarters. In the first quarter, it topped expectations with net income of 37 cents versus a mean estimate of net income of 30 cents per share.

Net income has increased 12.7% year over year on average across the last five quarters. The biggest gain came in the most recent quarter, when income climbed 64.6% from the year earlier quarter.

Competitors to Watch: Best Buy (NYSE:BBY), PC Mall, Inc. (NASDAQ:MALL), PC Connection, Inc. (NASDAQ:PCCC), Gaiam, Inc. (NASDAQ:GAIA), BIDZ.com, Inc. (NASDAQ:BIDZ), Wal-Mart (NYSE:WMT), Target (NYSE:TGT), Stamps.com Inc. (NASDAQ:STMP), Bluefly, Inc. (NASDAQ:BFLY), Overstock.com, Inc. (NASDAQ:OSTK), Amazon.com (NASDAQ:AMZN), eBay (NASDAQ:EBAY), U.S. Auto Parts Network, Inc. (NASDAQ:PRTS), and ValueVision Media, Inc. (NASDAQ:VVTV).

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(Source: Xignite Financials)