Upcoming AWS Coverage on Fiserv

LONDON, UK / ACCESSWIRE / January 13, 2017 / Active Wall St. announces its post-earnings coverage on SYNNEX Corp. (NYSE: SNX). The Company reported its financial results for the fourth quarter fiscal 2016 (Q4 FY16) and full year 2016 (FY16) on January 10, 2017. The Fremont, California-based Company's non-GAAP diluted EPS surged 42.8% y-o-y in the reported quarter; beating market consensus estimates. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of SYNNEX's competitors within the Business Services space, Fiserv, Inc. (NASDAQ: FISV), is estimated to report earnings on February 07, 2017. AWS will be initiating a research report on Fiserv following the release of its earnings results.

Today, AWS is promoting its earnings coverage on SNX; touching on FISV. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=SNX

http://www.activewallst.com/registration-3/?symbol=FISV

Earnings Reviewed

During Q4 FY16, SYNNEX's revenue rose 9.5% to a $3.89 billion from $3.55 billion reported at the end of Q4 FY15. Revenue numbers came in at par with market consensus expectations. Meanwhile, the Company's revenue rose 8.9% during the reported quarter after adjusting for foreign exchange translation headwind of $21.8 million.

The high-tech contractor reported GAAP net income attributed to SYNNEX of $85.32 million, or $2.13 per diluted share, during Q4 FY16 compared to $62.16 million, or $1.56 per diluted share, in the year ago same quarter. Meanwhile, the Company's non-GAAP net income attributed to SYNNEX for Q4 FY16 came in at $102.94 million, or $2.57 per diluted share, versus $71.63 million, or $1.80 per diluted share, in last year's corresponding quarter. The non-GAAP net income for Q4 FY16 outperformed Wall Street's expectations of $2.09 per diluted share.

In FY16, the Company's revenue increased to $14.06 billion from $13.34 billion in the year ago same period. In FY16, GAAP net income attributed to SYNNEX came in at $234.95 million, or $5.88 per diluted share, compared to $208.53 million, or $5.24 per diluted share, in FY15. Furthermore, non-GAAP net income attributed to SYNNEX for FY16 was $281.24 million, or $7.04 per diluted share, compared to $249.88 million, or $6.28 per diluted share, in the prior year's same period.

Operating Metrics

During the three months ended on November 30, 2016, the Company's gross profit increased to $378.79 million, or 9.7% of revenues, from $312.74 million, or 8.8% of revenues, in Q4 FY15. For the reported quarter, the Company incurred selling, general, and administrative expenses of $248.14 million compared to $207.77 million in Q4 FY15. The Company's GAAP operating income also increased to $130.64 million, or 3.36% of revenues, in Q4 FY16 from $104.97 million, or 2.96% of revenues, in Q4 FY15. Additionally, the Company's non-GAAP operating income for Q4 FY16 came in at $156.09 million, or 4.02% of revenues, versus $119.99 million, or 3.38% of revenues, in the previous year's comparable quarter.

Segment Performance

During Q4 FY16, the Company's Technology Solutions segment's revenue was $3.39 billion, up 6.6% from $3.18 billion in Q4 FY15. The segment's operating income rose during Q4 FY16 to $92.59 million, or 2.73% of segment revenue, from $80.44 million, or 2.53% of the segment's revenue, in the prior year's same quarter.

Concentrix contributed $500.40 million to total revenue during Q4 FY16, surging 33.9% from the $373.64 million in last year's comparable quarter. However, after adjusting for the Minacs' acquisition and translation effect of foreign currencies, Concentrix's revenue grew 1.8% y-o-y. Furthermore, the segment's operating income improved to $38.02 million, or 7.60% of the segment's revenue, in Q4 FY16 from $24.42 million, or 6.53% of the segment's revenue, in Q4 FY15.

Liquidity

As of November 30, 2016, the Company had cash and cash equivalents balance of $380.72 million compared to $336.07 million, at the close of books on November 30, 2015. Additionally, the Company reported long-term borrowings of $603.23 million as on November 30, 2016, versus $638.80 million as on November 30, 2015.

Dividend

In a separate press release on January 05, 2017, SYNNEX's Board of Directors declared a regular quarterly cash dividend of $0.25 per share. The dividend is payable on January 27, 2017, to shareholders of record at close of business on January 13, 2017.

Outlook

In its guidance for full year FY17, SYNNEX anticipates revenues to be in the range of $3.40 billion to $3.60 billion. Net Income during FY17 is forecasted to be between $52.6 million and $55.8 million; while non-GAAP net income is anticipated to be in the range of $64.7 million to $67.9 million. Furthermore, the Company projects GAAP diluted EPS in FY17 to be in the range of $1.31 to $1.39; whereas non-GAAP diluted EPS is expected to be between $1.61 and $1.69.

Stock Performance

On Thursday, January 12, 2017, SYNNEX's share price finished the trading session at $124.70, slipping 2.35%. A total volume of 633.48 thousand shares exchanged hands, which was higher than the 3 months average volume of 189.92 thousand shares. SYNNEX's stock price rallied 17.21% in the last three months, 26.14% in the past six months, and 56.05% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have gained 3.25%. The stock is trading at a PE ratio of 23.51 and has a dividend yield of 0.80%.

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SOURCE: Active Wall Street