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SYNNEX Corp (SNX - Free Report) recently topped estimates on solid top and bottom line growth. Analysts are now looking for double-digit growth for the next 2 years.

Shares were not able to hold onto the initial spike, but rising estimates and new-found momentum should push this Zacks #1 Rank (Strong Buy) higher.

Company Description

SYNNEX provides services for IT distribution, supply chain management, assembly and process outsourcing around the world. The company serves resellers, retailers and OEMs.

Beat the Street

SYNNEX just announced its fourth-quarter results on Jan 11 and it was a very positive report. Revenue from continuing operations was up over 12% to $2.47 billion. Annual revenue was up just under 12%.

Income from continuing operations came in at $37.5 million, which was 30% higher than the fourth quarter last year. The earnings per share of $1.04 beat the Zacks Consensus Estimate by 8 cents and is 25% higher than a year ago.

Estimates on the Rise

After the impressive results and bullish outlook from SYNNEX, analysts started raising their full-year estimates for fiscal 2011 and 2012. Forecasts for fiscal 2011 are up 17 cents, to $3.63 in the past month, on 12 upward revisions.

We have only received 2 upward revisions for 2012, but the Zacks Consensus is up 25 cents, to $4.00. These projections are calling for annual growth rates of over 11% and 10%, respectively.

And a Great Value Too

In addition to the solid earnings growth, SYNNEX is trading with great valuations as well. The forward P/E is just under 10 times and the PEG ratio is 1.0. Amongst similar companies, SYNNEX has the best price-to-sales ratio by far, at 0.14 times.

The Chart

Shares of SNX pushed through the previous 52-week high (the green line) in anticipation of the earnings news. While the stock was not able to hold onto the initial gains, the rising estimates should be enough to keep the momentum going forward.

SYNNEX Corp - ticker SNX >


Bill Wilton is the Aggressive Growth Stock Strategist for He is also the Editor in charge of the market-beating Zacks Small Cap Trader service

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