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:
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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.
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.
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.
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