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What: Shares of Synnex (NYSE:SNX) have plunged today by as much as 10% after the company reported earnings and guidance disappointed investors.
So what: Revenue in the fiscal first quarter came in at $2.5 billion, mostly on target with consensus estimates. The same can be said for the $0.88 per share adjusted profit that the company reported. The real cause for the drop came with Synnex's outlook for the coming quarter.
Now what: The business services company expects second-quarter sales to be in the range of $2.43 billion to $2.53 billion, the midpoint of which is below the $2.51 billion that the Street was modeling for. The bottom line should be in the ballpark of $0.78 to $0.82 per share, which is nowhere near the $0.92 per share consensus. The company is facing pricing pressure amid a tough demand environment, particularly in Canada.
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