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Stock Alert: Synnex Rises After Upbeat Results, Plans Of Splitting Co.

Shares of SYNNEX Corporation (SNX) climbed 12.98% on Friday to hit a new high of $148.63 before closing at $145.56. The stock is up nearly 60% year-to-date.

SYNNEX Corporation is a Fortune 200 business process services company.

On Thursday, after the bell, the company had reported better-than-expected fourth-quarter results. Net income on an adjusted basis rose to $219.6 million or $4.26 per share from $173.6 million or $3.69 per share in the same quarter a year ago. This is compared to $3.61 per share estimated by the analysts. Revenue also grew to $6.581 billion from $5.544 billion in the corresponding quarter last year.

Looking forward to the first quarter, revenue is expected to be in the range of $5.240 billion to $5.540 billion. Analysts have a consensus estimate of $5.39 billion.

Adjusted EPS in the first quarter is expected to be in the range of $3.03 to $3.22. The Street sees earnings of $3.09.

Last Friday, the company announced its plan to separate into two publicly traded companies; SYNNEX Technology Solutions- IT distribution, services, and integrated solutions company, and Concentrix- global customer experience (CX) solutions company. The transaction is expected to be completed in the second half of 2020.

Also, Synnex announced a 2.5-cent increase in the quarterly dividend from the previous quarter to $0.40 per share. The dividend is payable on January 31, 2020, to stockholders of record January 24, 2020.

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