Needham & Company reiterates Hold rating on SYNNEX Corp. (NYSE: SNX) following the company's 1Q earnings report. SNX reported F1Q results last night, with revenue of $3.13B slightly below guidance of $3.23-3.33B and the Street’s $3.26B. non-GAAP EPS of $1.37 was in-line with the $1.34-1.39 range and consensus of $1.37.

Analyst David Rold commented, "While F1Q was generally okay, F2Q EPS guidance was clearly disappointing as reflected in the 8% AH decline (as of writing). Though some of the shortfall is explainable as known growing pains in Concentrix (as were difficulties in recent quarters), we also acknowledge what seems like less longer-term visibility in that business, especially for investors. Nonetheless, with F2Q guidance assuming trough margins for the year and F17 targets reiterated, we also believe damage will be contained near term. However, this brings with it a much lower margin of error going forward, and therefore increased downside risk from any missteps. We believe our reduced estimates reflect these factors, and we look to a return to strong execution in both businesses before becoming more constructive. Reiterate Hold."

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Shares of SYNNEX Corp. closed at $96.66 yesterday.