Synnex 4Q profit falls but beats expectations

Synnex beats expectations in 4Q but issues weak revenue forecast

Associated Press

FREMONT, Calif. (AP) -- Synnex Corp. reported Thursday that its fourth-quarter profit fell on declining revenue, but the high-tech contractor still managed to beat market expectations. However, it issued a disappointing revenue forecast and its shares fell in after-hours trading.

Synnex, based in Fremont, Calif., earned $43.6 million, or $1.16 per share, for the quarter that ended Nov. 30. That compares with $50.2 million, or $1.37 per share, in the same quarter last year. Revenue fell to $2.77 billion from $2.84 billion, due to a decline in distribution revenue.

Analysts polled by FactSet expected $1.04 per share for the period on sales of $2.76 billion.

Synnex expects to earn 85 to 89 cents per share in its first quarter on revenue of $2.38 billion to $2.48 billion.

Analysts had forecast earnings of 89 cents per share and revenue of $2.5 billion.

Synnex shares fell 14 cents to $35.70 in after-hours trading. The stock was up 43 cents in the regular session to close at $35.84.

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