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SYNNEX Reports Lower Q2 Profit; Provides Q3 Guidance (SNX)

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Synnex Q2 2014 Earnings Follow Up

SYNNEX (NYSE: SNX) released its fiscal second-quarter earnings results after the closing bell on Tuesday.

The company reported earnings per share that were in-line with analysts' estimates and revenue that came in ahead of expectations. SYNNEX also provided third-quarter earnings guidance that was below current consensus, but the company's revenue range was at the high-end of current estimates. In late trade, the stock was last down around 4 percent to $40.00.

Management Commentary

“I am pleased to report healthy quarterly results highlighted by stronger than expected sales in our distribution segment, and continued strong growth in our Concentrix business,” stated Kevin Murai, President and Chief Executive Officer.

“With recent signs of economic strengthening, we anticipate that IT demand will slowly improve but remain somewhat mixed across products and geographies.” Mr. Murai continued, “We remain committed to growing our business and expect our margins to improve during the second half of the year reflecting the progress we've made in protecting market share and managing profitability.”

Q2 Results

The company reported net income attributable to SYNNEX of $30.8 million or $0.81 per share, compared to $34.4 million or $0.90 per share, in last year's second-quarter. This was in-line with Wall Street consensus EPS estimates of $0.81.

Revenue in the quarter was $2.59 billion, a 4.4 percent increase from the $2.48 billion the company reported last year. This came in ahead of analysts' consensus revenue estimates of $2.50 billion.

Q3 Guidance

Looking ahead to the third-quarter, the company forecast EPS of $0.91 to $0.95 on revenue of $2.65 billion to $2.75 billion. This compares to current consensus estimates calling for EPS of $0.96 on revenue of $2.65 billion for the fiscal third-quarter.

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