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Nov 30, 2019
TD Synnex Q4 2019 Earnings Report
Reported record financial performance driven by Technology Solutions and Concentrix segments.
Key Takeaways
SYNNEX Corporation reported record financial performance in Q4, driven by strong contributions from Technology Solutions and Concentrix. Revenue increased by 18.7% and EPS increased by 39.2%.
Technology Solutions revenue was $5.4 billion, up 17.4% from the prior fiscal year fourth quarter.
Concentrix revenue was $1.2 billion, up 24.7% from the prior fiscal year fourth quarter primarily due to the impact of the Convergys acquisition on October 5, 2018.
The trailing fiscal four quarters Return on Invested Capital (“ROIC”) was 8.8% compared to 7.9% in the prior fiscal year fourth quarter.
SYNNEX announced plans to separate SYNNEX and Concentrix to further enable each entity to achieve its growth potential.
Forward Guidance
SYNNEX’ current expectations for the fiscal 2020 first quarter include revenue in the range of $5.240 billion to $5.540 billion, net income in the range of $114.7 million to $124.6 million, and diluted earnings per share in the range of $2.21 to $2.40.
Positive Outlook
- Revenue is expected to be in the range of $5.240 billion to $5.540 billion.
- Net income is expected to be in the range of $114.7 million to $124.6 million
- On a non-GAAP basis, net income is expected to be in the range of $157.3 million to $167.2 million.
- Diluted earnings per share is expected to be in the range of $2.21 to $2.40
- On a non-GAAP basis, diluted earnings per share is expected to be in the range of $3.03 to $3.22, based on estimated outstanding diluted weighted average shares of 51.3 million.
Challenges Ahead
- After-tax amortization of intangibles is expected to be $36.2 million, or $0.70 per share.
- After-tax acquisition-related and integration expense is expected to be $6.4 million, or $0.12 per share.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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