SYNNEX Posts Upbeat Q2 Earnings, But Revenue Misses Views

reported better-than-expected earnings for its fiscal second quarter, but the company's revenue missed analysts' estimates. The company also issued a weak forecast for the current quarter. The Fremont, California-based company posted a quarterly profit of $51.9 million, or $1.30 per share, compared to $39.6 million, or $1.00 per share, in the year-ago period. Excluding items, the company's earnings rose to $1.55 per share from $1.50 per share. Its revenue slipped 5.8 percent year-over-year to $3.25 billion from $3.45 billion. However, analysts were expecting a profit of $1.53 per share on revenue of $3.42 billion. The average estimate among 5 Estimize users was for earnings of $1.57 per share and revenue of $3.48 billion. Technology Solutions revenue for the quarter slipped 7.82 percent year-over-year to $2.9 billion, while Concentrix revenue climbed 16.5 percent to $341.8 million. Operating margin widened to 2.75 percent from 1.97 percent. Cash flows from operations were around $127 million in the second quarter, versus $165 million used in operations in the year-ago quarter. "I am pleased to report a record operating profit and margin for our second quarter," stated Kevin Murai, President and Chief Executive Officer. "Technology Solutions earnings and operating margin improved and the investments made in Concentrix resulted in revenue and operating margin exceeding our expectations." For the current quarter, Synnex projects earnings of $1.40 to $1.45 per share, on revenue of $3.3 billion to $3.4 billion. Analysts had expected earnings of $1.67 per share on revenue of $3.53 billion. Synnex shares fell 6.49 percent to $77.00 in the after-hours trading session.