Synnex beat Wall Street earnings and revenue estimates for the fourth fiscal quarter ended Nov. 30, 2010, thanks to increasing demand for products through its distribution business and a solid showing from its global business services group, according to the company.
Synnex earned $US37.5 million on $US2.47 billion in sales for the fiscal quarter, compared to earnings of $US29.7 million on $US2.20 billion in the year-ago quarter. Analysts had projected earnings of 96 cents per share on $US2.37 billion in revenue.
"We are pleased with our strong operating performance for the fiscal fourth quarter and full year 2010. Both our distribution and GBS business segments contributed to our achievements," said Kevin Murai, president and CEO, in a statement.
"In 2011, we believe IT spending will be steady and Synnex will again outperform the market. We are excited about our profitable growth opportunities with our recent acquisitions in Japan and in our GBS business."
Synnex's distribution revenue in the fourth quarter was $US2.45 billion, a 12.4 percent increase from the prior-year quarter. GBS revenue from continuing operations, Synnex sold some of those assets earlier in the year, was $US27.7 million, a 5.3 percent increase.
For the 2010 fiscal year, Synnex earned $US127.9 million on $US8.61 billion in sales. In the 2009 fiscal year, the Fremont, Calif.-based distributor earned $US89.7 million on $US7.72 billion in revenue.
For the current quarter, Synnex expects earnings per share between 77 cents and 80 cents and revenue between of $US2.42 billion and $US2.52 billion.
Synnex has regularly beat Wall Street expectations since the economy started to recover.
Synnex shares closed at $US33.74 on Tuesday, up 77 cents are 2.3 percent.