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What: Shares of Synnex
So what: First-quarter results ended up somewhat mixed, with revenue of $2.46 billion falling short of expectations, while earnings per share of $1.02 came in topping the Street's estimates. The devil in the details was second-quarter guidance, which failed to impress.
Now what: The company expects second-quarter revenue to be between $2.45 billion and $2.55 billion, giving way to earnings per share in the range of $0.87 and $0.91. Even the upper limits of those ranges fall short of the $2.6 billion and $0.95-per-share respective consensus estimates. Synnex said some of the softness was related to a transition to a fee-for-service basis. On the flip side, Citigroup analyst Richard Gardner said that only explains some of the lackluster forecast, which must mean that the company is facing weak demand in its retail division.
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Fool contributor Evan Niu holds no position in any company mentioned. Check out his holdings and a short bio. The Motley Fool has a disclosure policy. We Fools don't 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.