Shares of SYNNEX (NYSE:SNX) climbed 34.7% in September, according to data from S&P Global Market Intelligence, after the business process services specialist announced strong fiscal third-quarter 2019 results.
After rising modestly along with the broader market in the first few weeks of last month, SYNNEX stock popped nearly 18% on Sept. 25 alone after its quarterly update hit the wires.
More specifically, SYNNEX's revenue increased 28.6% year over year to $6.204 billion, while adjusted (non-GAAP) net income per share rose 31.5% to $3.30. Most analysts were modeling lower adjusted earnings of $2.86 per share on revenue closer to $5.69 billion.
Within its top line, technology solutions segment revenue climbed 16.5% to $5.0 billion, while sales from its Concentrix subsidiary soared 136% to $1.2 billion, largely driven by SYNNEX's acquisition of Convergys in early October.
SYNNEX CEO Dennis Polk credited the outperformance to "go-to-market strategies in each business segment," elaborating, "[O]ur Technology Solutions revenue and earnings growth were exceptional, while Concentrix delivered another quarter of revenue expansion and superior execution."
If that wasn't enough, SYNNEX also guided for fiscal fourth-quarter 2019 revenue of $5.85 billion to $6.15 billion -- good for year-over-year growth of roughly 6.8% at the midpoint -- with adjusted earnings per share of $3.50 to $3.70. Here again, most analysts were looking for more modest revenue growth of 5.5%, with earnings near the bottom end of that guidance range.
In the end, this straightforward quarterly beat left the market little choice but to bid up SYNNEX stock in response last month. If the company can sustain that positive momentum in its underlying businesses, I think it could be just the start of a longer-term trend.