Synnex Beats 3Q Estimates; Net Income Up 50 Percent
The Fremont, Calif.-based distributor earned $11.5 million, or 38 cents per diluted share, compared with $7.7 million, or 32 cents per share, in the year-ago quarter. Analysts had projected a consensus net income estimate of 34 cents per share.
Sales were $1.34 billion, compared with $1.04 billion in the same period last year. Analysts projected $1.28 billion in revenue.
Distribution revenue was $1.19 billion, a 21 percent increase, while contract assembly sales accounted for $147.4 million, a 184 percent increase from last year.
Gross margins fell 46 basis points to 4.08 percent, due in part to a higher volume of sales to larger customers and the product mix in its contract assembly business, said Bob Huang, president and CEO of Synnex.
In the fourth quarter, Synnex expects net income between $11.8 million and $12.4 million, or 39 cents to 41 cents per share, on sales between $1.4 billion and $1.45 billion.
Analysts were projecting earnings of 36 cents per share on $1.38 billion in revenue for the fourth quarter.
The results include a onetime non-operating benefit of $700,000, or 2 cents per share, as a settlement of the final purchase price of its MiTAC International acquisition in 2000.
Shares of Synnex closed at $16.10 Wednesday, up 25 cents or 1.5 percent per share.