NYSE$SNX

TD Synnex Corp · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Reported record financial performance driven by Technology Solutions and Concentrix segments.

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.

Headline financials

Total Revenue

$6.58B

Previous: $5.62B+17.1%
EPS (adj)

$4.26

Previous: $3.65+16.7%
Days Sales Outstanding

54

Previous: 60-10.0%
Days Inventory Outstanding

40

Previous: 45-11.1%
Days Payable Outstanding

50

Previous: 57-12.3%
Cash Conversion Cycle

44

Previous: 48-8.3%
Adjusted ROIC

11.0%

No prior period
Capital Expenditures

$44M

Previous: $49.8M-11.7%
Net Income

$176M

Previous: $113M+55.5%
Operating Income

$268M

Previous: $198M+35.3%
Gross Profit

$795M

Previous: $651M+22.0%
Stock-Based Comp

$8.44M

Previous: $6.16M+37.0%

Revenue & EPS history

TD Synnex · Revenue · Quarterly

$6.58B

Q4 2019+17.1%vs Q4 2018
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

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.

Tailwinds

  • 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.

Headwinds

  • 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

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 18 quarterly earnings reports · overlaid with Q4 2019

Historical avgQ4 2019

+0.6%

Avg return

Earnings day

+2.2%

Avg return

5 days after

+1.7%

Avg return

30 days after

52%

35 / 67 earnings

Positive

+21.3%

Q1 2014

Best reaction

-15.4%

Q1 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026+2.9%
Q1 2026-2.4%+13.4%
Q4 2025-2.2%+3.3%+13.5%
Q3 2025+6.2%+8.9%+3.1%
Q2 2025-0.8%+0.8%+6.2%
Q1 2025-14.3%-17.2%-11.5%
Q4 2024+8.8%+11.6%+16.9%
Q3 2024+2.0%-0.6%+2.8%
Q2 2024-10.2%-10.8%-10.2%
Q1 2024+10.0%+7.3%+11.3%
Q4 2023+0.5%-1.2%-3.9%
Q3 2023-2.4%-2.0%-11.0%
Q2 2023-7.0%-3.8%+0.4%
Q1 2023+0.4%+4.1%-5.4%
Q4 2022+10.1%+11.1%+1.6%
Q3 2022+1.5%-3.6%+6.8%
Q2 2022-7.9%-5.9%+1.1%
Q1 2022-3.9%-4.8%-10.8%
Q4 2021-1.3%-2.7%-4.3%
Q3 2021-5.2%-6.1%-7.7%
Q2 2021+2.0%+3.0%-1.5%
Q1 2021+5.6%+13.1%+19.8%
Q4 2020+1.5%+0.7%+2.2%
Q3 2020+6.5%+12.3%+0.5%
Q2 2020+13.5%+16.7%+18.7%
Q1 2020-0.6%-3.5%-1.9%
Q4 2019+14.7%+16.9%+9.0%
Q3 2019+15.1%+15.0%+20.2%
Q2 2019+7.5%+6.5%+7.4%
Q1 2019+1.0%+7.5%+16.1%
Q4 2018+14.3%+6.6%+14.9%
Q3 2018+5.5%-0.1%-2.3%
Q2 2018-10.3%-7.9%-12.2%
Q1 2018-15.4%-14.4%-12.8%
Q4 2017-6.0%-1.6%-19.7%
Q3 2017+8.3%+9.0%+13.4%
Q2 2017+6.7%+0.6%-0.4%
Q1 2017-3.9%-4.3%-5.5%
Q4 2016+5.9%+4.0%-1.1%
Q3 2016+9.3%+7.0%-3.4%
Q2 2016+1.2%-0.4%+6.9%
Q1 2016-6.7%
Q4 2015-6.8%
Q3 2015-3.3%
Q2 2015-10.1%
Q1 2015-7.0%
Q4 2014+8.3%
Q3 2014+5.2%
Q2 2014-4.7%
Q1 2014+21.3%
Q4 2013-9.6%
Q3 2013-1.6%
Q2 2013-0.7%
Q1 2013-8.9%
Q4 2012-0.1%
Q3 2012-6.7%
Q2 2012-1.8%
Q1 2011-1.7%
Q1 2012-0.4%
Q2 2011+1.3%
Q4 2009+1.3%
Q4 2011+1.3%
Q3 2010+0.5%
Q4 2010+0.5%
Q3 2011+0.5%
Q2 2010-1.6%
Q1 2010+1.2%

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