Synnex blew away earnings estimates for its fourth fiscal quarter, ended Nov. 30, thanks to strong distribution business and "expansion into adjacent, higher-margin service and solution businesses," stated Kevin Murai, president and CEO of the Fremont, Calif.-based distributor.
Synnex reported $43.6 million in net income, or $1.16 per diluted share, on $2.77 billion in sales. Wall Street had expected earnings of $1.04 per share on $2.76 billion in sales.
The results were below the year-ago quarter numbers. In the fourth quarter of 2011, Synnex earned $50.2 billion, or $1.37 per share, on sales of $2.84 billion.
"I am pleased to report solid quarterly earnings even as compared to the prior year's exceptional profits from the hard disk drive shortage," Murai said in a statement.
For the 2012 fiscal year, Synnex earned $151.4 million or $3.99 per share, on $10.29 billion in sales. Those results compare to $150.3 million in profit, or $4.08 per share, on $10.41 billion in revenue for fiscal 2011.
For the current quarter, Synnex offered guidance of earnings between 85 cents and 89 cents per share on sales of $2.38 billion and $2.48 billion. Analysts had been expecting earnings of 89 cents per share on $2.51 billion in sales for the first quarter.
Synnex's distribution business accounted for $2.72 billion in the fourth quarter, down 3 percent from the year-ago quarter. The company's Global Business Services revenue was $54.9 million, up 22 percent from the year-ago quarter.
Shares of Synnex closed at $35.84, up 43 cents or 1.2 percent.
PUBLISHED JAN. 10, 2013