Synnex Corp. (SNX) reported a 24.3% jump in earnings for the fourth quarter helped by strong demand in Technology Solutions and an outstanding performance from Concentrix. The results exceeded analysts’ expectations. The company guided first-quarter earnings and revenue above consensus estimates. Following this, the stock inched up over 3% in the after-market session.
Net income climbed 24.3% to $113.2 million while diluted EPS increased 6.6% to $2.41 due to higher weighted-average common shares outstanding. Non-GAAP earnings soared 30.8% to $3.65 per share.
Total revenue rose 5.8% to $5.62 billion. Revenue from Technology Solutions declined 2.7% year-over-year while that from Concentrix jumped 82% as a result of the Convergys acquisition on October 5.
Looking ahead into the first quarter of fiscal 2019, the company expects revenue in the range of $5.225 billion to $5.425 billion and non-GAAP earnings in the range of $2.70 to $2.80 per share. Diluted earnings are anticipated to be $1.71 to $1.81 per share.
Synnex Q3 results beat street view; stock falls on weak guidance
The company said the non-GAAP financial measures exclude the impact of acquisition-related and integration expenses, the amortization of intangibles and the related tax effects. The after-tax amortization of intangibles is expected to be $37.7 million or $0.73 per share. After-tax acquisition-related and integration expense is predicted to be $13.1 million or $0.25 per share.
The company’s board of directors declared a quarterly cash dividend of $0.375 per common share. The dividend is payable on January 31, 2019, to stockholders of record as of January 22, 2019.
Shares of Synnex ended Thursday’s regular session up 1.84% at $86.83 on the NYSE. The stock has fallen over 34% in the past year while it has risen over 9% in the past three months.