Earnings Preview: Synnex Corporation Reports Monday

Jun.21.12 | About: SYNNEX Corporation (SNX)

SYNNEX Corporation (NYSE:SNX) provides distribution and business process outsourcing (BPO) services to resellers, retailers, and original equipment manufacturers (OEMs) worldwide. The company operates in two segments, Distribution Services and Global Business Services (GBS).

It is scheduled to report its Q2 2012 results on June 25, 2012, after the bell.

Technical Overview


Key Metrics

  • Market Cap: 1.26B
  • 52-week trading range: 22.56 - 44.25
  • Trailing P/E: 7.88
  • Forward P/E: 7.41
  • Price/Sales: 0.12
  • Price/Book: 1.02
  • PEG Ratio: 0.79
  • Total Debt: 300.86M
  • Annual dividend yield: N/A
  • Return on Equity: 14.11%
  • Return on Assets: 6.12%

Recent EPS Actuals vs. Estimates

The company has met or beaten analysts' estimates in the last four quarters. In the last quarter it reported $1.02 EPS, beating analyst estimates of $0.92.

The consensus EPS is $0.90 based on 8 analysts' estimates, up from $0.85 a year ago. Revenue estimates are $2.51B, up from $2.50B a year ago. The median target price by analysts for the stock is $42.00.

Average recommendation: Overweight

Source: Marketwatch

Analyst Upgrades and Downgrades

  • On March 7, 2012, the company was downgraded from Buy to Hold at Stifel Nicolaus.

Latest Developments

  • On June 7, 2012, SYNNEX Corporation announced that Mr. Thomas Alsborg, the Company's Chief Financial Officer, plans to retire from SYNNEX on or about November 30, 2012 to spend more time with his family and to pursue new interests.
  • On May 14, 2012, SYNNEX Corporation's Concentrix Corporation announced that t has been selected by CA Technologies (NASDAQ:CA) to support the Company's global teleprospecting program.
  • On May 8, 2012, Concentrix Corporation, a wholly-owned subsidiary of SYNNEX Corporation announced that it has been chosen to support the Latin American and Caribbean service contract renewals business for F5 Networks, Inc. (NASDAQ:FFIV), company is in Application Delivery Networking.
  • On April 10, 2012, SYNNEX Corporation announced that SoftLayer's suite of infrastructure services are available for reseller partners through SYNNEX' CLOUDSolv platform.
  • On March 27, 2012, SYNNEX Corporation announced that for the second quarter of 2012, it expects revenue to be in the range of $2.45-$2.55 billion. Net income is expected to be in the range of $33.3-$34.5 million and Diluted earnings per share are expected to be in the range of $0.87 to $0.91.
  • On January 10, 2012, SYNNEX Corporation announced that for the first quarter of 2012, it expects revenue to be in the range of $2.48-$2.58 billion. Net income is expected to be in the range of $33.1-$34.3 million and diluted earnings per share (EPS) expected to be in the range of $0.89-$0.93.

Competitors

SYNNEX Corp. operates in Business Services industry. The company could be compared to Arrow Electronics, Inc. (NYSE:ARW), Brightpoint Inc. (NASDAQ:CELL), Ingram Micro Inc. (NYSE:IM), and Tech Data Corp. (NASDAQ:TECD). Below is the table comparison of the most important ratios between these companies and the industry.

Below is the chart comparison with the stock price changes as a percentage for the selected companies and S&P 500 index for the last one year period.

SNX ChartClick to enlarge

SNX data by YCharts

Competitors' Latest Development

  • On June 19, 2012, Brightpoint Inc announced that its subsidiary, Brightpoint North America L.P. (BrightPoint Americas), has entered into a distribution agreement and services agreement with Duracell Powermat, LLC (Duracell Powermat).
  • On June 7, 2012, Lockheed Martin Corp announced that it has signed a new strategic enterprise agreement with Arrow Electronics covering procurement of more than 22,000 electronic components used in advanced technology systems such as missiles, satellites, radar systems, tactical fighter aircraft and unmanned surveillance systems.
  • On May 30, 2012, Tech Data Corp announced that its Board of Directors has authorized a share repurchase program of up to $100 million of the Company's common stock. Since 2005, the Company has purchased $1 billion of Tech Data stock, buying back 24.5 million shares to date.
  • On May 21, 2012, Tech Data Corp announced that for the second quarter of 2013, it expects relatively consistent sales on a sequential basis in both regions, in local currencies.
  • On May 15, 2012, Brightpoint Inc announced that its subsidiary, Brightpoint Australia Pty Ltd (BrightPoint Australia), has entered into an agreement with Macquarie Telecom Pty Limited (Macquarie Telecom) to provide fulfilment and logistic services in the Australian market.
  • On May 9, 2012, Brightpoint Inc announced that its subsidiary Brightpoint North America L.P. (BrightPoint Americas) has entered into an agreement with Digital Leash (ProtectCell).
  • On May 8, 2012, Brightpoint Inc announced that its subsidiary, Brightpoint North America L.P. (BrightPoint Americas), has entered into a distribution agreement with TCT Mobile Multinational Limited, a subsidiary of TCL Communications.
  • On April 26, 2012, Ingram Micro, Inc. announced that for second quarter of 2012, it expects sales to be flat to slightly up sequentially. The Company reported revenue of $8.749 billion in second quarter of 2011.
  • On April 18, 2012, Brightpoint Inc announced that its subsidiary, Brightpoint North America L.P. has renewed its exclusive services agreement with PR Wireless, Inc. (dba Open Mobile) to provide distribution and logistic services to support Open Mobile resellers and end-user customers in Puerto Rico.
  • On April 3, 2012, Arrow Electronics Inc announced an agreement with Ocular LCD, Inc. to serve as a distributor of Ocular's projected capacitive touch panel products in North America.
  • On April 3, 2012, DCC PLC announced that it has agreed to dispose of Altimate Group SA, DCC SerCom's Enterprise distribution business, to Arrow Electronics Inc, a global provider of products, services and solutions to industrial and commercial users of electronic components and enterprise computing solutions.
  • On April 3, 2012, Arrow Electronics Inc announced that Teradici, the developer of the PC-over-IP (PCoIP) protocol that enables a true PC experience for desktop virtualization, announced a distribution agreement with Arrow Enterprise Computing Solutions (ECS), a business segment of Arrow Electronics Inc., to distribute the Teradici APEX 2800 server offload card across Europe.
  • On March 21, 2012, Arrow Electronics Inc announced that it has signed a distribution agreement with ILS Technology. Under the agreement, Arrow customers in the Americas will have access to the ILS Technology deviceWISE M2M Application Platform and deviceWISE M2M Deployment Kit.
  • On March 20, 2012, Brightpoint, Inc. that its subsidiary, Brightpoint Australia Pty Ltd has entered into an agreement with Aggregato Mobile Direct Pty Limited to provide fulfillment and logistic services in support of Red Bull Media House GmbH.
  • On March 9, 2012, Brightpoint, Inc. announced that its subsidiary, Brightpoint North America L.P. has entered into a logistic services agreement with Lytro, Inc. maker of consumer light field camera.
  • On March 6, 2012, Ingram Micro, Inc.'s North America Services Division announced that it is authorized and ready to sell and support Siemens Enterprise Communications OpenScape Cloud Service via the Ingram Micro Cloud marketplace.
  • On February 28, 2012, Zscaler announced that its selection of Ingram Micro Inc. as the Company's exclusive U.S. distribution partner. Under the terms of the agreement, Ingram Micro's Services Division and Cloud Marketplace will offer Zscaler's cloud security solution to channel partners throughout the U.S.
  • On February 28, 2012, ABBYY provider of document recognition, document capture, and linguistic technologies and professional services, announced that it has entered into a new strategic distribution relationship with Tech Data Corporation.
  • On February 13, 2012, Arrow Electronics Inc announced the completion of the acquisition of TechTurn, Ltd., a provider of electronics asset disposition (EAD) services that specializes in the processing and sale of technology devices that are returned or recycled from businesses and consumers.
  • On February 8, 2012, Ingram Micro, Inc. announced that for fiscal 2012, it currently expects revenue growth in-line with current IT spending forecasts of low to mid-single digit growth over fiscal 2011.
  • On February 2, 2012, Arrow Electronics Inc announced that it has signed a global distribution agreement with Triune Systems. Under the agreement, Arrow will provide product distribution for Triune Systems and design-support services for new and existing customers leveraging the technologies and solutions from the Triune Systems portfolio.
  • On January 24, 2012, Sonian announced its partnership with Tech Data Corporation. Under this agreement, Sonian email archiving solution will be distributed through Tech Data's network of over 60,000 value added resellers (VARs).
  • On January 23, 2012, Exar Corporation announced that it has signed a global distribution agreement with Arrow Electronics, Inc.. Under the agreement, Arrow customers will have access to Exar's broad portfolio of power management and interface components, communications products, storage optimization solutions, network security and applied service processors.
  • On January 19, 2012, Ingram Micro, Inc. announced the promotion of Alain Monie to chief executive officer, effective tomorrow. Monie, who will also retain his current title of president, succeeds Gregory M.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.