LONDON, UK / ACCESSWIRE / October 6, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on SYNNEX Corp. (NYSE: SNX), which can be viewed by registering at http://protraderdaily.com/optin/'symbol=SNX, following the Company's disclosure of its third quarter fiscal 2017 financial results on September 21, 2017. The business process services Company outperformed top- and bottom-line expectations. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
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Earnings Reviewed
For the fiscal third quarter ended August 31, 2017, SYNNEX generated total revenues of $4.28 billion, up 16.5% compared to total revenues of $3.67 billion in Q3 FY16. The Company's revenue numbers beat analysts' estimates of $4.00 billion.
During Q3 FY17, SYNNEX's gross profit was $374.9 million, or 8.8% of revenues, compared to $326 million, or 8.9% of revenues, in Q3 FY16. The increase in gross profit was due to higher sales in the Company's Concentrix segment and increased cloud-based solutions platforms services.
SYNNEX's total adjusted selling, general, and administrative expenses (SG&A) were $235.4 million, or 5.51% of revenue, for Q3 FY17 compared to $212.3 million, or 5.79% of revenue, in Q3 FY16. The Company noted that the Minacs acquisition contributed to the increase in SG&A.
For Q3 FY17, SYNNEX's non-GAAP operating income was $139.9 million, or 3.27% of revenue, compared to $113.6 million, or 3.10% of revenue, in Q3 FY16.
SYNNEX posted net income of $75.2 million, or $1.87 per diluted share, for Q3 FY17 compared to net income of $58.7 million, or $1.47 per diluted share, for Q3 FY16. The Company posted non-GAAP earnings of $2.16 per diluted share compared to $1.73 per diluted share for the prior year's corresponding quarter. The non-GAAP earnings were ahead of Wall Street's estimates of $1.97 per share.
Segment Results
During Q3 FY17, SYNNEX's Technology Solutions segment's revenue was $3.78 billion, up 15.8% from revenue of $3.27 billion in Q3 FY16. Adjusting for the translation effect of foreign currencies, the Technology Solutions segment's sales increased by 16.1% on a y-o-y basis.
The Technology Solutions segment generated operating income of $100.0 million, or 2.64% of segment revenue, for Q3 FY17 compared to $79.4 million, or 2.43% of segment revenue, in Q3 FY16. The segment's non-GAAP operating income was $101.3 million, or 2.68% of segment revenue, for the reported quarter compared to $80.1 million, or 2.45% of segment revenue, in the prior year's same quarter.
During Q3 FY17, SYNNEX's Concentrix segment's revenue advanced 21.9% to $495.97 million compared to $406.72 million for Q3 FY16. Adjusting for the translation effect of foreign currencies, the Concentrix segment's revenue increased 22.0% on a y-o-y basis.
The Concentrix segment generated operating income of $22.2 million, or 4.49% of segment revenue, for Q3 FY17, compared to $18.6 million, or 4.56% of segment revenue, in Q3 FY16. The segment's non-GAAP operating income was $38.6 million, or 7.78% of segment revenue, for the reported quarter versus $33.5 million, or 8.24% of segment revenue, in the prior year's comparable quarter.
Cash Matters
SYNNEX's trailing fiscal four quarters Return on Invested Capital (ROIC) was 10.8% for Q3 FY17 compared to 9.6% in Q3 FY16. The adjusted trailing fiscal four quarters ROIC was 11.7%. The Company's debt to capitalization ratio was 32.1%, up from 29.5% in the prior year's corresponding quarter.
SYNNEX's cash generated from operations was approximately $65 million for Q3 FY17. The Company's accounts receivable totaled $1.9 billion on August 31, 2017, for a days sales outstanding (DSO) of 40 days, which was down 1 day from the prior year's quarter. Inventories totaled $2.2 billion, or 53 days, at the end of Q3 FY17, up 10 days from Q3 FY16.
SYNNEX announced that its Board of Directors has declared a quarterly cash dividend of $0.30 per common share. The dividend will be payable on October 27, 2017, to stockholders of record as of the close of business on October 13, 2017.
Stock Performance
On Thursday, October 05, 2017, the stock closed the trading session at $130.35, rising 1.27% from its previous closing price of $128.72. A total volume of 203.04 thousand shares have exchanged hands, which was higher than the 3-month average volume of 198.70 thousand shares. SYNNEX's stock price surged 8.00% in the last three months, 25.99% in the past six months, and 16.37% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have gained 7.71%. The stock is trading at a PE ratio of 18.71 and has a dividend yield of 0.77%. At Thursday's closing price, the stock's net capitalization stands at $5.22 billion.
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