Synnex Corp.’s (SNX) shares declined 1.4% in extended trading hours on Thursday despite the company reporting robust financial results for the fiscal second quarter (ended May 31). Synnex provides integration, logistics, and distribution services for the technology industry.
Adjusted earnings per share (EPS) increased 66% year-over-year to $2.09, beating the Street’s estimates of $1.93.
Quarterly revenue totaled $5.86 billion, up 31% year-over-year, surpassing analysts’ expectations of $4.96 billion. (See Synnex stock chart on TipRanks)
Dennis Polk, President and CEO of Synnex said, “Outstanding execution by our team coupled with a positive IT spending environment drove fiscal second-quarter results above our expectations.”
For the fiscal third quarter, the company expects revenue to range from $4.95 – $5.45 billion, and adjusted EPS to be in the $1.90 – $2.10 range.
BofA Securities analyst Ruplu Bhattacharya recently reiterated a Buy rating on the stock but raised the price target from $121 to $145 (20% upside potential).
In anticipation of positive results, Bhattacharya said that Synnex’s enterprise solutions revenue is likely to rise as lockdowns come to an end and on-premise buying resumes.
Overall, the stock has a Strong Buy consensus rating based on 3 Buys. The average Synnex analyst price target of $143.33 implies 18.5% upside potential from current levels. The company’s shares have gained 137.4% over the past year.
According to TipRanks’ Smart Score rating system, Synnex scores a “Perfect 10”, suggesting that the stock is likely to outperform market averages.
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