Shares of SYNNEX Corp. (NYSE:SNX) surged on Wednesday after the business process services provider reported its fiscal third-quarter results. SYNNEX beat analyst estimates for both revenue and earnings by wide margins, and its guidance compared favorably to expectations. The stock was up about 19.7% at 12:15 p.m. EDT.
SYNNEX reported third-quarter revenue of $6.2 billion, up 28.6% year over year and $510 million higher than the average analyst estimate. Technology solutions revenue was up 16.5% to $5.0 billion, while Concentrix revenue jumped 136% to $1.2 billion.
Non-GAAP (adjusted) earnings per share (EPS) came in at $3.30, up from $2.51 in the prior-year period and $0.44 better than analysts were expecting. Adjusted operating margin rose by more than a percentage point to 4.36%.
"Our record performance reflects the continued success of our go-to-market strategies in each business segment," said SYNNEX President and CEO Dennis Polk in prepared remarks included in the earnings release.
For the fiscal fourth quarter, SYNNEX expects to produce revenue between $5.85 billion and $6.15 billion. That's down from the third quarter, but it's in line with the average analyst estimate of $5.93 billion. Fourth-quarter non-GAAP EPS is expected between $3.50 and $3.70, mostly higher than the average analyst estimate of $3.52.
With SYNNEX's strong third-quarter report in the books, its shares carved out a new 52-week high on Wednesday.