Synnex Profit Tops Estimate - Update

(RTTNews) - Business process services provider Synnex Corp (SNX), Wednesday reported a higher second-quarter profit on growth across key business segments, with earnings and revenue topping Wall Street estimates.

Synnex provided some weak earnings outlook for the third quarter, but revenue projections appear strong.

Fremont, California-based Synnex posted second-quarter net earnings of $39.6 million or $1.01 per share, compared with $30.8 million or $0.81 per share last year.

Excluding items, adjusted earnings for the quarter were $1.52 per share. On average, eight analysts polled by Thomson Reuters estimated earnings of $1.36 per share for the quarter. Analysts' estimates typically exclude special items.

Revenue for the second quarter climbed to $3.45 billion from $2.6 billion last year. Seven analysts on consensus had a revenue estimate of $3.17 billion for the quarter.

At its key Technology Solutions segment, revenue increased 24.2 percent from last year. The smaller Concentrix segment saw strong growth, due largely to the recently acquired IBM's CRM business.

For the third quarter, Synnex projects adjusted earnings of $1.45 to $1.50 per share and revenue of $3.3 billion to $3.4 billion. Analysts currently expect earnings of $1.53 per share on revenue of $3.29 billion for the quarter. Synnex stock closed Wednesday at $73.93, up $0.13 or 0.18%, on a volume of 0.49 million shares on the NYSE. In after hours, the stock dropped $1.41 or 1.91%.