SYNNEX Corp. increases Q4 profit
Shares of SYNNEX Corp. (NYSE: SNX) rose today on news after the close on Thursday that the provider of outsourcing services in IT distribution reported fourth-quarter earnings above analysts’ projections.
The Fremont, Calif.-based company announced that its net income for the three months ended Nov. 30, 2007 was $20.2 million, or $0.61 per diluted share, well above the $0.53 per share anticipated by Wall Street. The result is 29.5% higher compared with earnings of $15.6 million, or $0.48 per share, a year earlier.
Revenue for the fourth quarter rose 13.4% to $1.97 billion, compared with $1.74 billion during the same period in 2006.
“Our success in the fourth quarter was the result of excellent execution in our core business and from our recent strategic acquisitions,” said president and CEO Robert Huang in a statement.
Looking ahead, SYNNEX forecasted that its first-quarter 2008 revenues will be between $1.73 billion and $1.78 billion, leading to a profit of between $0.49 per share and $0.51 per share. Analysts were expecting to see revenues of $1.78 billion and earnings of $0.46 per share.
“While the current economic environment is not ideal, we anticipate growing our earnings per share in excess of 15% year-over-year through a combination of continued execution, realization of the full impact of our 2007 acquisitions and improvements in efficiency and productivity,” CEO Huang explained.
At closing, shares of SYNNEX Corp. (SNX) had added $1.43, or 7%, to $20.69. The 52-week high of $23.00 was reached on Oct. 23, 2007, while the 52-week low of $17.25 was established on March 14, 2007.
