SYNNEX Q3 Tops Estimates

SYNNEX SNX has reported a third-quarter EPS of $1.24 versus the Street's estimate of $0.94, beating by $0.30. Earnings per share were up 33 percent from the year-ago period. Revenue came in at $2.73 billion versus the Street estimate of $2.72 billion. Sales were up 6 percent year-over-year. "I am pleased to report record sales and solid profitability for our fiscal third quarter," Kevin Murai, President and Chief Executive Officer, SYNNEX Corporation, said in a company release. "Our Distribution segment posted strong sales growth and operating margin, and our GBS segment continued its trend of double-digit sales growth." SYNNEX expects its fourth-quarter EPS to fall within the $1.14 to $1.18 range versus the Street estimate of $1.16, which falls right in the middle. The firm expects to report sales of $2.92 billion to $3.02B versus Wall Street's estimate of $2.93 billion. SYNNEX's earnings results and guidance come after two years of impressive growth. While the firm has had a few ups and downs, its shares have risen more than 163 percent over the last 24 months. The stock has increased 82 percent since September 25, 2012. Year-to-date, SYNNEX is up nearly 80 percent. Earlier this month SYNNEX acquired IBM's IBM worldwide customer care business process outsourcing services business for $505 million. The deal consisted of approximately $430 million in cash and $75 million in stock. Disclosure: At the time of this writing, Louis Bedigian had no position in the equities mentioned in this report. Louis Bedigian is the Senior Tech Analyst and Features Writer of Benzinga. You can reach him at louis(at)benzingapro(dot)com. Follow him @LouisBedigianBZ