Synnex Posts Better-than-expected Fiscal 3Q Profit

FREMONT, Calif. (AP) — Business services provider Synnex Corp. said Monday its fiscal third-quarter profit rose nearly 5 percent to handily beat Wall Street's predictions.

For the three months ended Aug. 31, Synnex earned $23.1 million, or 67 cents per share, up from $22.1 million, or 66 cents per share, in the same period a year earlier.

Revenue fell nearly 2 percent to $2.01 billion from $2.05 billion.

Analysts, on average, were expecting a profit of 61 cents per share on revenue of $1.86 billion.

Looking ahead, the company forecast earnings per share of 72 cents to 75 cents per share on sales of $2.03 billion to $2.13 billion. Analysts, on average, are predicting a profit of 72 cents per share on revenue of $2.03 billion.

"We believe the market has stabilized since the February timeframe and we are optimistic about the future growth of our business despite being in the midst of a recession," said President and CEO Kevin Murai, in a statement.

The company's shares rose 36 cents to $32.50 in after-hours trading, after adding 80 cents, or 2.6 percent, to close at $32.14.