Stock Monitor: Euronet Worldwide Post Earnings Reporting
LONDON, UK / ACCESSWIRE / April 26, 2018 / Active-Investors.com has just released a free earnings report on SYNNEX Corp. (NYSE: SNX). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=SNX. The Company reported its first quarter fiscal 2018 operating and financial results on March 28, 2018. The business process services Company outperformed top- and bottom-line expectations, and also provided guidance for the upcoming quarter. Register today and get access to over 1000 Free Research Reports by joining our site below:
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Earnings Highlights and Summary
For the three months ended February 28, 2018, SYNNEX's total revenues surged 29% to $4.55 billion compared to $3.52 billion in Q1 FY17. The Company's revenue numbers beat analysts' estimates of $4.5 billion.
During Q1 FY18, SYNNEX's gross profit dollars totaled $414.0 million, up 21% on a y-o-y basis. The Company's gross margin was 9.1% compared to 9.7% in the prior year's same period. The increase in gross profit dollars was primarily driven by the acquisition of Westcon-Comstor in Q4 2017, as well as an overall growth in both its business segments. The decrease in gross margin was primarily due to the higher mix of Technology Solutions business from the Westcon-Comstor acquisition, and customer and product mix within the Company's systems design and integration business solutions.
For Q1 FY18, SYNNEX's adjusted selling, general, and administrative expenses (SG&A) were $273.9 million, or 6% of revenues, compared to $223.3 million, or 6.3% of revenues, in Q1 FY17. The increase in SG&A was primarily due to the acquisitions of Westcon-Comstor and Tigerspike. SYNNEX's consolidated non-GAAP operating income was $140.4 million in the reported quarter versus $118.9 million in the year earlier comparable quarter.
SYNNEX's net income was $24.4 million, or $0.61 per diluted share, in Q1 FY18 compared to $61.8 million, or $1.54 per diluted share, in Q1 FY17. The Company's reported quarter results included a charge of approximately $41.3 million, or $1.03 per diluted share, related to repatriation tax and the remeasurement of deferred tax accounts.
For Q1 FY18, SYNNEX's non-GAAP net income was $85.6 million, or $2.14 per diluted share, compared to $72.4 million, or $1.82 per diluted share, in Q1 FY17. The Company's earnings beat Wall Street's estimates of $2.11 per share.
During Q1 FY18, SYNNEX's Technology Solutions segment's revenues surged 33% to $4.0 billion compared to $3.0 billion in Q1 FY17. Adjusting for the Westcon-Comstor acquisition, the segment's revenues grew 12% on a y-o-y basis. The segment's operating income was $82.3 million, or 2.0% of segment revenues, in the reported quarter compared to $80.4 million, or 2.6% of segment revenues, in the prior year's corresponding quarter. SYNNEX's non-GAAP operating income was $96.9 million, or 2.4% of segment revenues, in Q1 FY18 compared to $81.1 million, or 2.7% of segment revenues, in Q1 FY17.
For Q1 FY18, SYNNEX's Concentrix segment's revenues were $507.7 million, reflecting an increase of 6% compared to $478.2 million in Q1 FY17. The segment's operating income was $29.7 million, or 5.8% of segment revenues, in Q1 FY18 compared to $21.3 million, or 4.5% of segment revenues, in Q1 FY17. The segment's non-GAAP operating income was $43.6 million, or 8.6% of segment revenues, in the reported quarter compared to $37.8 million, or 7.9% of segment revenues, in the year ago same period.
SYNNEX's trailing fiscal four quarters return on invested capital (ROIC) was 8.5% in Q1 FY18 compared to 10.5% in Q1 FY17. The Company's adjusted trailing fiscal four quarters ROIC was 11.0%.
SYNNEX's debt to capitalization ratio was 43.8% in Q1 FY18, up from 33.1% in Q1 FY17, primarily as a result of the Westcon-Comstor acquisition. The Company's cash used in operations was approximately $6 million during the reported quarter, bringing its 12-months operating cash flow from operations to $357 million. At the end of Q1 FY18, SYNNEX had over $2 billion available to fund growth through its cash and credit facilities.
For Q2 FY18, SYNNEX is forecasting revenues to be in the range of $4.58 billion to $4.78 billion. The Company's net income is expected to be in the band of $71.9 million to $75.7 million. On a non-GAAP basis, the Company's net income is expected to be in the range of $91.1 million to $94.9 million. SYNNEX is estimating earnings per diluted share to be in the band of $1.77 to $1.87, and on a non-GAAP basis, to be in the range of $2.25 to $2.35.
Stock Performance Snapshot
April 25, 2018 - At Wednesday's closing bell, SYNNEX's stock slightly climbed 0.01%, ending the trading session at $102.67.
Volume traded for the day: 175.32 thousand shares.
After yesterday's close, SYNNEX's market cap was at $4.15 billion.
Price to Earnings (P/E) ratio was at 13.49.
The stock has a dividend yield of 1.36%.
The stock is part of the Services sector, categorized under the Business Services industry. This sector was up 0.2% at the end of the session.
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