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SYNNEX Corporation (SNX - Snapshot Report) recently surprised on the Zacks Consensus Estimate for an impressive 12th quarter in a row. SNX trades with a PEG ratio of just 0.9.

SYNNEX 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, IBM, Intel, and Microsoft.

Revenue Jumped 9% in the Fiscal Third Quarter

SYNNEX just reported fiscal third quarter earnings results on Sep 29, so this is an early look into how the technology sector is faring as we head into the second half of the year.

According to SYNNEX, the outlook still looks sweet.

Revenue rose 9% to $2.2 billion from the fiscal third quarter of 2009. Global Business Services continued to be strong as revenue jumped 21.9% compared to a year ago and rose 12% over the second quarter of this year.

"In the third quarter we experienced ongoing broad-based demand and we continued to successfully drive our mix of higher margin products and services," said Kevin Murai, President and CEO.

"Our Global Business Services segment performed well as it benefited from the ramp of recent competitive wins," he added.

Outlook for the Fiscal Fourth Quarter

The company was optimistic about the fourth quarter, believing that the demand environment in North America will remain relatively stable.

Revenue is expected to be a bit hotter than the third quarter- in the range of $2.3 to $2.4 billion.

Earnings per share are expected between 94 and 97 cents. The Zacks Consensus Estimate had been looking for just 88 cents so analysts immediately scrambled to raise fourth quarter and full year estimates based on the guidance and the earnings beat.

8 out of 8 estimates moved higher for fiscal 2010, pushing the Zacks Consensus up to $3.18 from $2.98 in the last week. This is earnings growth of 23%.

7 out of 7 also raised fiscal 2011 estimates. The fiscal 2011 Zacks Consensus climbed to $3.46 from $3.28, also in the last 7 days.

SYNNEX Is Still a Value Stock

SYNNEX shares got a boost out of the good earnings report but the stock is still pretty cheap. It is trading with a forward P/E of just 8.8x while its peers are at 12x.

It has a price-to-book ratio of 1.1, also under its peers at 1.4.

The company has a solid return on equity (ROE) of 12.3%.

SYNNEX is a Zacks #1 Rank (strong buy) stock.

You can see the incredible earnings surprise streak below. Not many companies managed to surprise during the entire recession.

Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor in charge of the market-beating Zacks Value Trader service. You can follow her at twitter.com/traceyryniec.

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