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.
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