- Synnex (SNX +12.1%) reports Q2 revenue decrease of 3.3% Y/Y to $5.53B.
- Q2 overall margins: Gross declined 104 bps to 11.17%; Operating declined 103 bps to 2.02%; adj. operating declined 134 bps to 2.92% & adj. EBITDA declined 137 bps to 3.57%.
- Debt to adj. EBITDA leverage ratio declined 90 bps to 2.4%.
- Return on invested capital was up 50 bps to 8.7% and adj. ROIC was 10.6%.
- Cash generated from operations was ~$1.2B for the quarter.
- The Company has approved a share repurchase program of up to $400M of its common stock over a period of up to 3 years, effective July 1, replacing the previous 3-year program.
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Q3 2020 Outlook: Revenue $5.5-5.9B; Net income of $67-93M; adj. net income of $103.9-129.9M; EPS of $1.29-1.79; adj. EPS of $2.00-2.50; diluted weighted average shares of 51.3M; after-tax amortization of intangibles of $33.4M & after-tax acquisition-related and integration expense to be $3.5M.
- Previously: Synnex EPS beats by $1.34, beats on revenue (June 25)