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UPDATE 1-Synnex Q3 tops Wall Street, sees stable demand in Q4
September 29, 2010 / 9:52 PM / 7 years ago

UPDATE 1-Synnex Q3 tops Wall Street, sees stable demand in Q4

* Q3 EPS $0.86 vs est $0.74; rev rises 9 pct

* Sees Q4 EPS $0.94-$0.97 vs est $0.88

* Sees Q4 rev $2.30-$2.40 bln vs est $2.32 bln

* Says N American demand to be stable in Q4

* Shares rise 5 pct in extended trade

Sept 29 (Reuters) - Technology distributor Synnex Corp (SNX.N) posted strong third-quarter results that beat market expectations, helped by increased demand and a mix of higher-margin products and services, and forecast a relatively stable North American demand in the fourth quarter.

Shares of the company rose 5 percent in after-market trade Wednesday.

Synnex, which competes with Arrow Electronics (ARW.N), Avnet (AVT.N), Tech Data (TECD.O) and Ingram Micro IM.N in the information technology product distribution market, said the fourth-quarter demand is expected to be in line with normal seasonal trends.

The company expects to earn 94-97 cents per share for the fourth quarter, on revenue of $2.30-$2.40 billion.

Analysts on average were expecting earnings of 88 cents a share, on revenue of $2.32 billion, according to Thomson Reuters I/B/E/S.

For the June-August quarter, net income attributable to the company was $30.9 million, or 86 cents a share, compared with $22.5 million, or 65 cents a share, a year ago.

Net revenue rose 9 percent to $2.18 billion. Revenue from continuing operations of distribution segment was up 9 percent at $2.15 billion, while that from Global Business Services jumped 22 percent.

Analysts on average had expected earnings of 74 cents a share, on revenue of $2.11 billion for the third quarter.

Shares of the Fremont, California-based company, which have gained more than 11 percent in the past one month when most of the technology distributers saw improved demand, rose 5 percent in trading after the bell. They closed at $25.90 in regular trading on the New York Stock Exchange. (Reporting by Swati Chitnis in Bangalore; Editing by Gopakumar Warrier)

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