Synnex Corporation Stock Shares Climb On Positive Earnings
Ticker.tv News | Jun 27, 2016 08:36AM ET
Synnex Corporation (NYSE:SNX)
Synnex Corporation (SNX), a global business process services company, last week reported their fiscal 2016 second quarter financial results.
Synnex reported second quarter earnings of $1.37 per share which beat analyst expectations of $1.30 per share. Synnex reported second quarter revenues increased 3.8% year over year to $3.38 billion, which beat analyst expectations of $3.28 billion.
h3 Synnex Corporation CEO’s Comments/h3h3 SNX Technical Analysis/h3
“During our second quarter, we achieved sales and profit results above our expectations.” stated Kevin Murai, President and Chief Executive Officer. “Our efficient operating model delivered another strong quarter of positive operating cash flow, double digit adjusted ROIC and, we believe, positions us well for growth in the second half of 2016.”
SNX opened trading yesterday at $93.98, which was up from the previous day's trading of $92.94. SNX closed trading yesterday at $94.00 and spiked up after market to $98.61, equivalent to a 5% increase from the closing price.
Taking a look at the daily chart, we can see the last time SNX traded above these levels was on March 22nd when it traded at $101.83. Taking a closer look at the daily chart, we can see that SNX has been in a upward trend dating back to May 5th when it traded at $78.16.
SNX has a float of 28.89 million shares and traded 1.19 times the normal daily trading volume on Thursday. For trading purposes, I would like to see SNX open trading on Friday above $97.00, and if it does I would be looking to take a long position at the bell. My stop loss would be $0.50 from my entry position, fearing anything more than that and the stock would start to fill in the gap up.
h3 Company Profile/h3SYNNEX Corporation provides business process services to resellers, retailers, original equipment manufacturers, and financial and insurance institutions in the United States, North and South America, the Asia-Pacific, Europe, and internationally. It operates in two segments, Technology Solutions and Concentrix. The Technology Solutions segment distributes peripherals; information technology systems, including data center server and storage solutions; system components; software; networking/communications/security equipment; consumer electronics; and complementary products.
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This segment also provides systems design and integration solutions, build-to-order, and configure-to-order assembly capabilities for data center servers, and storage and networking solutions. The Concentrix segment offers a portfolio of strategic solutions and end-to-end business services focused on customer engagement strategy, process optimization, technology innovation, front and back-office automation, and business transformation services.
The company also provides logistics services that include outsourced fulfillment, virtual distribution, and direct ship to end-users; financing services comprising net terms, third party leasing, floor plan financing, and letters of credit backed financing and arrangements; marketing services, such as direct mail, external media advertising, reseller product training, targeted telemarketing campaigns, trade shows, trade groups, database analysis, print on demand services, and Web-based marketing; online services; and technical support services. The company was formerly known as SYNNEX Information Technologies, Inc. and changed its name to SYNNEX Corporation in October 2003. SYNNEX Corporation was founded in 1980 and is headquartered in Fremont, California.
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