Synnex Profit Tops Estimates, Q4 Guidance Weak; Stock Down 7%

(RTTNews) - Business services provider Synnex Corp (SNX) on Monday reported a better-than-expected increase in third-quarter profit, despite a decline in revenues, driven by improved margins.

The company provided weak guidance for the fourth quarter and its shares dropped more than 7% in after-hours trade on the NYSE.

Synnex reported third-quarter net earnings of $48.2 million or $1.21 per share compared with $45 million or $1.14 per share last year.

Excluding amortization charges and other one-time items, adjusted earnings for the quarter were $1.47 per share compared with $1.58 per share a year ago.

Revenues for the quarter were down 5.7% at $3.33 billion compared with $3.54 billion in the prior year.

Analysts polled by Thomson Reuters estimated earnings of $1.43 per share on revenues of $3.38 billion for the quarter. Analysts' estimates typically exclude special items.

Operating margin improved to 2.44% from 2.23% a year ago.

For the fourth quarter, the company expects adjusted earnings of $1.74 to $1.79 per share on revenues of $3.48 billion to $3.58 billion. Analysts expect earnings of $1.78 per share on revenues of $3.72 billion.

Synnex announced a quarterly cash dividend of $0.20 per share.

SNX closed Monday at $82.50, down $1.96 or 2.32%, on the NYSE. In after hours, the stock dropped $6.04 or 7.32% at $76.46.