SYNNEX Co. (SNX) Expected to Post Earnings of $3.00 Per Share

Equities analysts expect SYNNEX Co. (NYSE:SNX) to announce $3.00 earnings per share for the current quarter, according to Zacks. Three analysts have made estimates for SYNNEX’s earnings, with the highest EPS estimate coming in at $3.02 and the lowest estimate coming in at $2.97. SYNNEX reported earnings per share of $2.79 in the same quarter last year, which indicates a positive year over year growth rate of 7.5%. The business is scheduled to announce its next quarterly earnings results on Tuesday, January 8th.

According to Zacks, analysts expect that SYNNEX will report full-year earnings of $10.12 per share for the current financial year, with EPS estimates ranging from $10.05 to $10.22. For the next fiscal year, analysts expect that the company will report earnings of $11.58 per share, with EPS estimates ranging from $11.43 to $11.65. Zacks’ EPS calculations are a mean average based on a survey of research firms that cover SYNNEX.

SYNNEX (NYSE:SNX) last announced its quarterly earnings results on Wednesday, October 3rd. The business services provider reported $2.57 earnings per share for the quarter, topping analysts’ consensus estimates of $2.46 by $0.11. SYNNEX had a net margin of 1.41% and a return on equity of 17.16%. The firm had revenue of $4.91 billion during the quarter, compared to analysts’ expectations of $4.88 billion. During the same period in the prior year, the company earned $2.16 EPS. The firm’s revenue was up 14.8% on a year-over-year basis.

SNX has been the subject of a number of research reports. Zacks Investment Research raised shares of SYNNEX from a “sell” rating to a “hold” rating in a research report on Wednesday, August 15th. Stifel Nicolaus decreased their price target on shares of SYNNEX from $130.00 to $114.00 and set a “buy” rating for the company in a research report on Thursday, October 4th. Needham & Company LLC upgraded shares of SYNNEX from a “buy” rating to a “strong-buy” rating and set a $135.00 price objective on the stock in a report on Thursday, October 4th. SunTrust Banks cut their price objective on shares of SYNNEX to $100.00 and set a “buy” rating on the stock in a report on Thursday, October 4th. Finally, TheStreet lowered shares of SYNNEX from a “b-” rating to a “c+” rating in a report on Friday, October 12th. One research analyst has rated the stock with a sell rating, two have issued a hold rating, five have issued a buy rating and one has given a strong buy rating to the company. The company presently has a consensus rating of “Buy” and a consensus price target of $127.00.

In other news, CFO Marshall Witt sold 600 shares of the company’s stock in a transaction dated Tuesday, September 4th. The shares were sold at an average price of $96.44, for a total value of $57,864.00. Following the sale, the chief financial officer now owns 17,210 shares in the company, valued at approximately $1,659,732.40. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CEO Dennis Polk sold 2,000 shares of the company’s stock in a transaction dated Tuesday, September 4th. The shares were sold at an average price of $96.21, for a total transaction of $192,420.00. Following the completion of the sale, the chief executive officer now owns 26,494 shares in the company, valued at approximately $2,548,987.74. The disclosure for this sale can be found here. In the last quarter, insiders acquired 370,331 shares of company stock worth $29,495,099 and sold 8,609 shares worth $735,256. Insiders own 3.20% of the company’s stock.

Several institutional investors have recently modified their holdings of the company. FMR LLC raised its stake in shares of SYNNEX by 1.5% in the 3rd quarter. FMR LLC now owns 5,944,225 shares of the business services provider’s stock valued at $503,475,000 after purchasing an additional 89,828 shares in the last quarter. BlackRock Inc. grew its position in shares of SYNNEX by 2.5% during the 3rd quarter. BlackRock Inc. now owns 3,777,636 shares of the business services provider’s stock valued at $319,967,000 after buying an additional 92,689 shares during the last quarter. Dimensional Fund Advisors LP grew its position in shares of SYNNEX by 1.2% during the 3rd quarter. Dimensional Fund Advisors LP now owns 1,775,137 shares of the business services provider’s stock valued at $150,356,000 after buying an additional 21,468 shares during the last quarter. Northern Trust Corp grew its position in shares of SYNNEX by 6.1% during the 2nd quarter. Northern Trust Corp now owns 906,408 shares of the business services provider’s stock valued at $87,477,000 after buying an additional 52,225 shares during the last quarter. Finally, Boston Partners grew its position in shares of SYNNEX by 2.1% during the 2nd quarter. Boston Partners now owns 815,045 shares of the business services provider’s stock valued at $78,660,000 after buying an additional 16,895 shares during the last quarter. Institutional investors and hedge funds own 71.66% of the company’s stock.

SYNNEX stock traded up $1.30 during trading on Thursday, reaching $75.33. 219,237 shares of the company’s stock were exchanged, compared to its average volume of 389,188. The company has a current ratio of 1.51, a quick ratio of 0.94 and a debt-to-equity ratio of 0.47. SYNNEX has a 52-week low of $72.83 and a 52-week high of $141.94. The stock has a market cap of $3.79 billion, a price-to-earnings ratio of 8.50 and a beta of 0.83.

The company also recently disclosed a quarterly dividend, which was paid on Friday, October 26th. Shareholders of record on Friday, October 12th were issued a $0.35 dividend. The ex-dividend date was Thursday, October 11th. This represents a $1.40 dividend on an annualized basis and a yield of 1.86%. SYNNEX’s dividend payout ratio is currently 15.80%.

About SYNNEX

SYNNEX Corporation provides business process services in North and South America, the Asia-Pacific, Europe, and internationally. It operates in two segments, Technology Solutions and Concentrix. The Technology Solutions segment distributes peripherals; information technology systems, including data center server and storage solutions; system components; software; networking/communications/security equipment; consumer electronics; and complementary products.

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