The 10-second takeaway
For the quarter ended Feb. 29 (Q1), SYNNEX missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly, and GAAP earnings per share increased significantly.
Margins improved across the board.
SYNNEX recorded revenue of $2.46 billion. The seven analysts polled by S&P Capital IQ foresaw a top line of $2.54 billion on the same basis. GAAP reported sales were 1.6% lower than the prior-year quarter's $2.50 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.02. The seven earnings estimates compiled by S&P Capital IQ forecast $0.92 per share. GAAP EPS of $1.02 for Q1 were 28% higher than the prior-year quarter's $0.80 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 6.9%, 120 basis points better than the prior-year quarter. Operating margin was 2.6%, 50 basis points better than the prior-year quarter. Net margin was 1.6%, 40 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $2.57 billion. On the bottom line, the average EPS estimate is $0.92.
Next year's average estimate for revenue is $10.81 billion. The average EPS estimate is $4.22.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 106 members rating the stock outperform and 10 members rating it underperform. Among 32 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 31 give SYNNEX a green thumbs-up, and one gives 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 $37.50.
Over the decades, small-cap stocks like SYNNEX have provided market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add SYNNEX to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.