SYNNEX Corporation

SYNNEX Corporation (SNX - Snapshot Report), the IT systems and software equipment distributor, said in January that it expected earnings per share at the high end of its guidance range. The company has surprised on estimates 4 consecutive quarters by an average of 9.44%. SNX is scheduled to report first quarter 2009 earnings on Mar 26.

Company Description

SYNNEX Corporation services resellers and original equipment manufacturers (OEMs) in regions around the world.

It distributes IT systems, peripherals, system components, software and networking equipment to more than 15,000 resellers throughout the United States, Canada and Mexico for OEM suppliers such as Hewlett Packard (HP - Snapshot Report), IBM (IBM - Analyst Report), Intel (INTC - Analyst Report), and Microsoft (MSFT - Analyst Report).

Reaffirmed First Quarter 2009 Guidance

On Jan 27, the company confirmed its prior fiscal first quarter 2009 guidance of earnings per share in the range of 50 cents to 53 cents. Revenue is expected between $1.74 billion and $1.84 billion.

SYNNEX also said it expects to come in on the high-end of the range or possibly exceed it.

The company is scheduled to report first quarter earnings on Mar 26.

Consensus Estimates Rise

Given the company's January statement about guidance, covering analysts have moved estimates in-line with the forecast.

First quarter consensus estimates rose 1 cent to 52 cents in the last 60 days.

2009 full year consensus estimates are also up a penny to $2.29 in the last 2 months.

Net Income Rose 30.8% in the Fourth Quarter 2008

On Jan 8, SYNNEX reported fourth-quarter 2008 earnings that easily beat Wall Street estimates by 14.29%. Earnings per share rose 31% to 80 cents per share from 61 cents in the year ago period. Analysts expected 70 cents per share.

Revenue rose 6.4% to $2.1 billion from $1.97 billion in the fourth quarter of 2007. The company said its solid performance in 2008 was a combination of continued execution, business line expansion and improvements in efficiency and productivity.

Value Fundamentals

SYNNEX is a Zacks #1 Rank (strong buy) stock. It is trading with a P/E of only 6.25. Its price-to-book is 0.77. The company also has a low PEG ratio of 0.52. SNX has a solid 5-year average return on equity (ROE) of 11.41%.