The 10-second takeaway
For the quarter ended Nov. 30 (Q4), SYNNEX beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly, and earnings per share increased significantly.
Margins grew across the board.
SYNNEX booked revenue of $2.8 billion. The seven analysts polled by S&P Capital IQ expected a top line of $2.8 billion. Sales were 15% higher than the prior-year quarter's $2.5 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $1.27. The seven earnings estimates compiled by S&P Capital IQ predicted $1.15 per share on the same basis. GAAP EPS of $1.37 for Q4 were 32% higher than the prior-year quarter's $1.04 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 6.6%, 90 basis points better than the prior-year quarter. Operating margin was 3.0%, 30 basis points better than the prior-year quarter. Net margin was 1.8%, 30 basis points better than the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods.
What does the future hold?
Next quarter's average estimate for revenue is $2.5 billion. On the bottom line, the average EPS estimate is $0.91.
Next year's average estimate for revenue is $10.9 billion. The average EPS estimate is $4.19.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 101 members out of 109 rating the stock outperform, and eight members rating it underperform. Among 34 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 32 give SYNNEX a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on SYNNEX is outperform, with an average price target of $32.89.
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