SYNNEX: Beats Earnings and Raised Dividends

Process services company, SYNNEX (NYSE: SNX) has announced their 3rd quarterly earnings beating analysts’ expectations. The company reported EPS of $1.73 on revenues of $3.67 billion, compared to consensus estimates of EPS of $1.56 on revenues of $3.49 billion. The Company offers a range of services to resellers, retailers, original equipment manufacturers, financial and insurance institutions, and other industry verticals across the world.

“Execution in our core business and the investments we’ve made in new business models helped drive strong performance in Technology Solutions. Also, we are seeing the benefits of strong sales and productivity improvements in our Concentrix business,” stated Kevin Murai, President and Chief Executive Officer.  “During the quarter we closed the acquisition of Minacs and I am pleased to welcome our new associates to the company.”

Guidance for Fourth Quarter:

The following statements are based on SYNNEX’s current expectations for the fiscal 2016 fourth quarter. Non-GAAP financial measures exclude the impact of acquisition and integration expenses, restructuring costs, the amortization of intangibles and the related tax impact thereon. These statements are forward-looking and actual results may differ materially.

-Revenue is expected to be in the range of $3.83 billion to $3.93 billion.

-Net income is expected to be in the range of $64.8 million to $66.8 million and on a Non-GAAP basis net income is expected to be in the range of $82.7 million to $84.7 million.

-Diluted earnings per share is expected to be in the range of $1.62 to $1.66 and on a Non-GAAP basis diluted earnings per share is expected to be in the range of $2.06 to $2.11.

-After-tax amortization of intangibles is expected to be $10.2 million, or $0.25 per share. After tax acquisition, integration and restructuring expenses are expected to be $7.7 million, or $0.19 per share.

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