U.S. Markets closed

Free Post Earnings Research Report: SYNNEX's Revenue Surged 26%; Non-GAAP EPS Advanced 14%

LONDON, UK / ACCESSWIRE / July 17, 2018 / If you want access to our free earnings report on SYNNEX Corp. (NYSE: SNX), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=SNX. SYNNEX reported its second quarter fiscal 2018 operating and financial results on June 28, 2018. The high-tech contractor outperformed top- and bottom-line expectations. Additionally, the Company provided guidance for the upcoming quarter and fiscal year. Register today and get access to over 1,000 Free Research Reports by joining our site below:

www.active-investors.com/registration-sg

Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, SYNNEX most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

www.active-investors.com/registration-sg/?symbol=SNX

Earnings Highlights and Summary

For the quarter ended May 31, 2018, SYNNEX generated revenue of $4.97 billion, up 26% compared to revenue of $3.94 billion in Q2 FY17. The Company's reported numbers beat analysts' estimates of $4.68 billion.

During Q2 FY18, SYNNEX recorded operating income of $123.9 million compared to $125.1 million in Q2 FY17. The Company's non-GAAP operating income was $152.3 million in the reported quarter, up 7.8% compared to $141.2 million in the prior year's same quarter.

For Q2 FY18, SYNNEX recorded net income of $93.7 million, or $2.34 per diluted share, compared to $73.1 million, or $1.83 per diluted share, in Q2 FY17. The Company's non-GAAP net income totaled $95.3 million, or $2.38 per diluted share, in the reported quarter versus earnings of $83.2 million, or $2.08 per diluted share, in the year earlier comparable quarter. SYNNEX's earnings surpassed Wall Street's estimates of $2.30 per share.

SYNNEX's Segment Results

During Q2 FY18, the Technology Solutions' revenue surged 30% to $4.5 billion on a y-o-y basis. The segment's operating income was $96 million, or 2.1% of the segment's revenue, in the reported quarter compared to $102 million, or 2.9% of the segment's revenue, in the prior year's corresponding quarter. The segment's non-GAAP operating income was $111 million, or 2.5% of the segment's revenue, in Q2 FY18 compared to $102 million, or 3.0% of the segment's revenue, in Q2 FY17.

For Q2 FY18, the Concentrix segment's revenue was $491 million, up 2% on a y-o-y basis. The segment's operating income was $28 million, or 5.6% of the segment's revenue, for the reported quarter compared to $23 million, or 4.9% of the segment's revenue, in the prior fiscal year's comparable quarter. The segment's non-GAAP operating income was $41 million, or 8.4% of the segment's revenue, in the reported quarter compared to $39 million, or 8.1% of the segment's revenue, in the prior year's same quarter.

Financial Position

SYNNEX's trailing fiscal four quarters Return on Invested Capital (ROIC) was 8.9% compared to 11.0% in Q2 FY17. The Company's adjusted trailing fiscal four quarters ROIC was 10.9%.

SYNNEX's debt to capitalization ratio was 43.9% in Q2 FY18, up from 33.9% in Q2 FY17, primarily as a result of the Westcon-Comstor Americas acquisition in Q4 FY17. The Company's depreciation and amortization (D&A) were $23 million and $26 million, respectively.

For Q2 FY18, SYNNEX's cash generated from operations was approximately $68 million.

Outlook

For the third quarter fiscal 2018, SYNNEX's revenue is expected to be in the range of $4.8 billion to $5.0 billion. The Company is expecting net income to be in the band of $77.9 million to $81.6 million and on a non-GAAP basis, net income is estimated to be in the range of $97.0 million to $100.7 million.

SYNNEX's diluted earnings per share for Q3 FY18 is expected to be in the range of $1.95 to $2.04 and on a non-GAAP basis, diluted earnings per share is expected to be in the range of $2.42 to $2.52.

Stock Performance Snapshot

July 16, 2018 - At Monday's closing bell, SYNNEX's stock dropped 1.86%, ending the trading session at $98.60.

Volume traded for the day: 262.19 thousand shares.

After yesterday's close, SYNNEX's market cap was at $3.97 billion.

Price to Earnings (P/E) ratio was at 10.99.

The stock has a dividend yield of 1.42%.

The stock is part of the Services sector, categorized under the Business Services industry.

Active-Investors:

Active-Investors (A-I) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. A-I has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

A-I has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third-party research service company (the "Reviewer") represented by a credentialed financial analyst [for further information on analyst credentials, please email info@active-investors.com. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by A-I. A-I is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

A-I, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. A-I, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, A-I, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither A-I nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://active-investors.com/legal-disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: info@active-investors.com

Phone number: 73 29 92 6381

Office Address: 6, Jalan Kia Peng, Kuala Lumpur, 50450 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur, Malaysia

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Active-Investors