SYNNEX Corp. (SNX) Tops Q2 EPS by $3.95, Revenues Beat; Offers 3Q EPS/Revenue Guidance Abvove Consensus
SYNNEX Corp. (NYSE: SNX) reported Q2 EPS of $1.83, $3.95 better than the analyst estimate of ($2.12). Revenue for the quarter came in at $5.53 billion versus the consensus estimate of $5.13 billion.
Second Quarter Fiscal 2020 Highlights
- Technology Solutions: Revenue was $4.5 billion, down 2.1% from the prior fiscal year second quarter. Operating income was $88 million, or 2.0% of segment revenue, compared to $112 million, or 2.5% of segment revenue, in the prior fiscal year second quarter. Non-GAAP operating income was $98 million, or 2.2% of segment revenue, compared to $124 million, or 2.7% of segment revenue, in the prior fiscal year second quarter.
- Concentrix: Revenue was $1.1 billion, down 8.1% from the prior fiscal year second quarter. Operating income was $24 million, or 2.2% of segment revenue, compared to $62 million, or 5.4% of segment revenue in the prior fiscal year second quarter. Non-GAAP operating income was $63 million, or 6.0% of segment revenue, compared to $120 million, or 10.3% of segment revenue, in the prior fiscal year second quarter.
- The trailing fiscal four quarters Return on Invested Capital ("ROIC") was 8.7% compared to 8.2% in the prior fiscal year second quarter. The adjusted trailing fiscal four quarters ROIC was 10.6%.
- Cash generated from operations was approximately $1.2 billion for the quarter.
"Our Q2 performance is a true testament to the skills of our associates, our nimble and resilient operational capabilities, and it further validates our business strategies in this challenging period," said Dennis Polk, SYNNEX President and CEO. "I deeply appreciate the ongoing efforts and dedication of our worldwide team."
GUIDANCE:
SYNNEX Corp. sees Q3 2020 EPS of $2.00-$2.50, versus the consensus of $1.15. SYNNEX Corp. sees Q3 2020 revenue of $5.5-5.9 billion, versus the consensus of $5.38 billion.
Third Quarter Fiscal 2020 Outlook
The following statements are based on SYNNEX current expectations for the fiscal 2020 third quarter. Non-GAAP financial measures exclude the impact of acquisition-related and integration expenses, the amortization of intangibles and the related tax effects thereon. These statements are forward-looking and actual results may differ materially.
- Revenue is expected to be in the range of $5.5 billion to $5.9 billion.
- Net income is expected to be in the range of $67.0 million to $93.0 million and on a non-GAAP basis, net income is expected to be in the range of $103.9 million to $129.9 million.
- Diluted earnings per share is expected to be in the range of $1.29 to $1.79 and on a non-GAAP basis, diluted earnings per share is expected to be in the range of $2.00 to $2.50, based on estimated outstanding diluted weighted average shares of 51.3 million.
- After-tax amortization of intangibles is expected to be $33.4 million, or $0.64 per share.
- After-tax acquisition-related and integration expense is expected to be $3.5 million, or $0.07 per share.
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