SYNNEX Shares Jumped: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
So what: The business process services provider put up revenue of $2.57 billion, rising 18% from last year's $2.18 billion, which resulted in net income of $39 million, or $1.07 per share. Operating income jumped 28% to $66.5 million, and SYNNEX CEO Kevin Murai added that the company's focus on key IT growth markets and value-added services are paying off.
Now what: Next quarter, the company sees revenue to be in the range of $2.78 billion to $2.88 billion and diluted earnings per share between $1.11 and $1.15, compared to the consensus of $2.81 billion and $1.06 per share. A handful of analysts have upgraded the stock and boosted price targets following the results, including Raymond James, Needham & Company, and Merrill Lynch. SYNNEX is performing particularly well given the context of tough macro conditions in IT spending. The company even boasts a coveted five-star CAPS rating. This one is worth watching -- add it to your watchlist today.
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At the time this article was published
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