Tag - Snx

Shares of Synnex Corp. (NYSE: SNX) got a 10% boost after the company exceeded analystsʼ estimates for fiscal third quarter earnings and revenue.

For the quarter ended Aug. 31, Synnex reported Thursday afternoon earnings of $22.1 million, or $0.66 per share, on revenue of $2.05 billion.

Analysts on average were expecting the company to report earnings of 58 cents a share, excluding special items, on revenue of $1.96 billion, according to Reuters Estimates.

Fremont, Calif.-based Synnex is a business process services company. By mid-day, the stock is at $22.80, up $2.16 from Thursdayʼs close. The stock has ranged between $17.63 and $27.28 in the past 52 weeks.

For detailed price information and news stories on Synnex, click SNX.

Shares of SYNNEX Corp. (NYSE: SNX) rose today on news after the close on Thursday that the provider of outsourcing services in IT distribution reported fourth-quarter earnings above analysts’ projections.

The Fremont, Calif.-based company announced that its net income for the three months ended Nov. 30, 2007 was $20.2 million, or $0.61 per diluted share, well above the $0.53 per share anticipated by Wall Street. The result is 29.5% higher compared with earnings of $15.6 million, or $0.48 per share, a year earlier.

Revenue for the fourth quarter rose 13.4% to $1.97 billion, compared with $1.74 billion during the same period in 2006.

“Our success in the fourth quarter was the result of excellent execution in our core business and from our recent strategic acquisitions,” said president and CEO Robert Huang in a statement.

Looking ahead, SYNNEX forecasted that its first-quarter 2008 revenues will be between $1.73 billion and $1.78 billion, leading to a profit of between $0.49 per share and $0.51 per share. Analysts were expecting to see revenues of $1.78 billion and earnings of $0.46 per share.

“While the current economic environment is not ideal, we anticipate growing our earnings per share in excess of 15% year-over-year through a combination of continued execution, realization of the full impact of our 2007 acquisitions and improvements in efficiency and productivity,” CEO Huang explained.

At closing, shares of SYNNEX Corp. (SNX) had added $1.43, or 7%, to $20.69. The 52-week high of $23.00 was reached on Oct. 23, 2007, while the 52-week low of $17.25 was established on March 14, 2007.

The Russell 2000 (NYSE: IWM) and the other major U.S. indices are falling on more news of financial trouble stemming from the subprime meltdown.
 
At 10:33 a.m. ET, the small-cap index had lost 9.64 points, or 1.34%, to 710.57. The Dow Jones Industrial Average (INDU) was off 184.12 points, or 1.43%, to 12,668.97.

Stocks opened in negative territory following news that Merrill Lynch & Co., Inc. (NYSE: MER) may suffer $15 billion in losses from investments in securities backed by mortgage loans.

The loss, which is twice what the New York-based investment bank had initially estimated, is an unpleasant reminder of how shockwaves from the stagnating U.S. housing market continue to ripple through financial markets.

There was more bearish news from the financial sector as credit card issuer American Express Co. (NYSE: AXP), announced that it will absorb a fourth-quarter pretax charge of about $440 million due to slower spending by card members and an increase in delinquencies. The company said that it now expects fourth-quarter earnings below the level a year earlier.

Many mortgage lenders nationwide have taken a hit and even declared bankruptcy as U.S. home prices have stagnated and many borrowers have defaulted on their loans and gone into foreclosure. Lenders frequently packaged loans and sold them as securities to financial companies, which have in turn also incurred billions in losses.

Business process services company Synnex Corp. (NYSE: SNX) said after the close today that net income surged 30% for the second quarter.  

For the second quarter ended May 31, 2007, the California-based company reported a 30% increase in net income to $14.7 million, or $0.45 per share compared with $11.3 million, or $0.36 per share in the same quarter last year.

On average, seven analysts polled by Thomson Financial expected the company to report earnings of $0.44 per share.

 “Our second quarter results mark a significant milestone on the road to evolving our business model from a traditional broad line distributor to a leading business process services company,” said Robert T. Huang, President and CEO.

In April, the company acquired a controlling interest in China Civilink for $30 million; and in May it completed the acquisition of substantially all of Redmond Group of Companies’ assets for approximately $40 million.