Synnex posts 38 percent jump in 3rd-qtr profit on new business; 4th-qtr forecast tops views

Synnex 3Q profit jumps 38 percent on new business

FREMONT, Calif. — Synnex Corp. on Wednesday said its fiscal third-quarter profit rose 38 percent as its global business services segment benefited from new business and the business products services company’s profit margin improved.

For the three months ended Aug. 31, Synnex posted net income of $30.9 million, or 86 cents per share, compared with $22.5 million, or 65 cents per share, in the year-earlier quarter. Revenue rose 9 percent to $2.18 billion, from $2 billion last year.

Analysts polled by Thomson Reuters, on average, expected profit of 74 cents per share, on revenue of $2.11 billion.

Synnex said distribution revenue rose 9 percent to $2.15 billion. Global business services revenue jumped 22 percent to $31 million.

The company, which provides services in information technology distribution, supply chain management, contract assembly and business process outsourcing in North America, Asia and the U.K., said it expects fourth-quarter earnings per share to fall between 94 cents and 97 cents, on revenue ranging from $2.3 billion to $2.4 billion.

Analysts expect profit of 88 cents per share, with estimates ranging from 83 cents to 93 cents. Wall Street forecasts revenue of $2.32 billion for the fourth quarter, with estimates ranging from $2.2 billion to $2.44 billion.

In aftermarket electronic trading, Synnex shares jumped $1.28, or 4.9 percent, to $27.18. The stock closed Wednesday’s regular session down 2 cents at $25.90.