SYNNEX Corporation (NYSE:SNX) reported upbeat results for its fourth quarter Friday, and announced plans to separate into two publicly traded companies. The company also issued Q1 earnings guidance above analyst estimates.
In the company’s Technology Solutions division, revenue was $5.4 billion, up 17.4% from the prior fiscal year fourth quarter. Operating income was $167 million, or 3.1% of segment revenue, compared to $126 million, or 2.7% of segment revenue, in the prior fiscal year fourth quarter.
In Synnex’s Concentrix division, 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. Operating income was $101 million, or 8.4% of segment revenue, compared to $75 million, or 7.7% of segment revenue in the prior fiscal year fourth quarter.
In terms of first-quarter 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 and 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 and 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.
Shares hiked $16.16, or 12.5%, to $145.00
