Shares of IT contractor Synnex Corp. (SNX) surged Friday after the release of a better-than-expected earnings report.
Synnex's stock price jumped 11.8% to more than $97 on the heels of a quarterly earnings surprise of 12.31%, according to Zacks.
The Fremont, Calif.-based tech contractor reported earnings of $3.65 a share on Thursday, well above Zacks consensus estimate of $3.25. It follows a 4.1% earnings surprise in the previous quarter, when Synnex reported profit of $2.57 a share compared to the consensus estimate of $2.45.
Dennis Polk, president and chief executive officer of Synnex, highlighted the performance of the company's business services subsidiary, Concentrix.
"Our record results continued in the fourth quarter as a result of strong demand in Technology Solutions and outstanding performance from Concentrix," said Dennis Polk, president and chief executive officer, in a press statement. "Superior execution by our team and leveraging the strategic investments we have made enabled the strong finish to fiscal 2018. We look forward to driving additional value for all our constituents in 2019."
Concentrix revenue hit $972 million in the fourth quarter, up 82% from the same quarter a year before. The increase was driven in part by the acquisition of Convergys on Oct. 5, the company said.
Operating income for Concentrix rose 7.7% to $75 million, up from $48 million during the fourth quarter of 2017.