Boston, MA 04/07/2014 (wallstreetpr) – SYNNEX Corporation (NYSE:SNX) reported strong first quarter which was supported by decent IT demand, a demand which the CEO Kevin Murai expects to continue so that the company can be able to realize even stronger earnings.
The company not only realized significant gain in revenue during the first quarter, but was also able to model a strong future. Thus, the management issued second quarter outlook that was stronger than analyst consensus estimate.
Shares of the company jumped to a new 52-week high Friday, and settled up more than 23 percent.
Financial performance
SYNNEX Corporation (NYSE:SNX) reported first quarter net income of $38.4 million or $1.01 per diluted share. That compared with net income of $33.4 million or $0.88 per diluted share in the comparable quarter a year earlier. Thus, net income jumped 15 percent year-over-year.
On the adjusted basis, earnings per share in the quarter were $1.25, much better than $0.91 in the corresponding quarter of 2013. Revenue was $3.03 billion, a 23 percent jump from a year earlier.
Ahead of itself
The results realized in the first quarter were better than expected. The management particularly singled out IT revenue which crew beyond the ambitious estimates in the segment. Thus, SYNNEX Corporation (NYSE:SNX) management expects the IT demand experienced in the first quarter to continue in the second quarter. This will be particularly possible given that the company expects to close it’s the IBM customer service acquisition in more countries in the months ahead.
Performance outlook
SYNNEX Corporation (NYSE:SNX) expects to realize revenue between $3.1 and $3.2 billion in the second quarter. The quarter is expected to end with adjusted earnings per share between $1.34 and $1.38. Analysts are looking for $1.14 per share.
Promising future
That SYNNEX Corporation (NYSE:SNX) ended the first quarter with strong revenue growth across all its business segment leaves no doubt that business process service offering is witnessing growing demand. Thus, more strategic acquisitions and partnership as already happening in Synnex should result in revenue and earnings improvement, as long as expenses and costs are contained.
