(SNX) - SYNNEX Corporation - Profit forecasts for this quarter and next are up 4.7% and 10.8%

SYNNEX Corporation (SNX), a Zacks #1 Rank stock, exceeded analysts’ earnings expectations in nine out of the past 11 quarters, most recently by 16.2%. The company managed to match estimates in the other two quarters. Consensus estimates have been on the rise. SNX has a price-to-book ratio of only 1.3, compared to 4.8 for the market. Full Analysis SYNNEX Corporation is a global information technology supply chain services company which provides a comprehensive range of offerings to original equipment manufacturers and value-added resellers. SNX makes a habit out of either matching or beating analysts’ earnings expectations. In fact, the company has done so every quarter since it went public in 2003. Over the past 11 quarters, SNX surprised to the upside on nine occasions by an average margin of 6.3%. On Sep 21, SNX reported third-quarter profits of $13.8 million, or 43 cents per share. In the prior-year period, the company’s earnings per share came in at 34 cents, marking a 26.5% year-over-year improvement. The result also represented a 16.2% positive surprise with analysts calling for 37 cents. Revenues jumped 14.4% to $1.59 billion from $1.39 billion in the third quarter of 2005. President and CEO Robert T. Huang stated, “I am pleased by our performance in the third quarter, especially considering the fact that each of our operating regions contributed to our sales and profit growth.” Consensus estimates have been climbing upward. Profit forecasts for this quarter and next are up 4.7% and 10.8%, respectively, over the past 60 days and reflect upward revisions by four analysts. Estimates for the full years of 2006 and 2007 have risen 5.3% and 6.0%, respectively, over the same period of time. Four analysts upped their estimates for both years. Earnings per share are projected to grow 12.0% over the next 3-5 years. Management expects fourth-quarter revenues between $1.67 billion and $1.72 billion and net income between $14.2 million and $14.9 million, or 44 cents to 46 cents per share. In the fourth quarter of 2005, revenues amounted to $1.59 billion while earnings per share came in at 40 cents. The company announced on Sep 11 that its wholly owned subsidiary, BSA Sales, LLC signed a definitive agreement to acquire Concentrix Corporation, which provides call center, database analysis and print-on-demand services to customers in various industries. Concentrix recorded revenues of about $15 million in 2005. Huang stated, “We look for acquisitions, like Concentrix, that will further strengthen our capabilities and service offerings.” SNX is currently trading at a valuation of 14.1x trailing 12-month earnings and at 13.5x current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 17.4x trailing 12-month earnings and at 16.4x its current fiscal-year estimated earnings. The company has a price-to-book ratio of only 1.3, compared to 4.8 for the market. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home