Why Synnex (SNX) Stock Is Up Today

NEW YORK (TheStreet) -- Shares of Synnex Corp. (SNX) closed up 4.04% to $64.70 on Tuesday after the company announced late Monday it approved the initiation of a quarterly cash dividend.

An initial quarterly cash dividend of 12.5 cents per common share will be payable on October 31, 2014 to shareholders of record as of the close of business on October 17, 2014.

After the market closed Monday, the company also reported $3.535 billion in third-quarter revenue, up 29.3% from the same period one year earlier. Operating income totaled $78.8 million, a 24.1% increase from the third quarter 2013.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Separately, TheStreet Ratings team rates SYNNEX CORP as a "buy" with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:

"We rate SYNNEX CORP (SNX) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income, attractive valuation levels, growth in earnings per share and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 5.7%. Since the same quarter one year prior, revenues rose by 33.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Electronic Equipment, Instruments & Components industry. The net income increased by 28.5% when compared to the same quarter one year prior, rising from $30.77 million to $39.55 million.
  • SYNNEX CORP has improved earnings per share by 24.7% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, SYNNEX CORP reported lower earnings of $2.98 versus $4.01 in the prior year. This year, the market expects an improvement in earnings ($5.94 versus $2.98).
  • SNX's debt-to-equity ratio of 0.62 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 0.80 is weak.
  • You can view the full analysis from the report here: SNX Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

If you liked this article you might like

Market Recon: Optimism Should Rise Again Once the Smoke Clears

Market Recon: Optimism Should Rise Again Once the Smoke Clears

A Glimpse Into the Jobs Market Will Be One Thing to Watch Tuesday

A Glimpse Into the Jobs Market Will Be One Thing to Watch Tuesday

5 Hated Stocks You Should Love Instead

5 Hated Stocks You Should Love Instead

New Lifetime High Reached: Synnex (SNX)

New Lifetime High Reached: Synnex (SNX)

Strong On High Volume: Synnex (SNX)

Strong On High Volume: Synnex (SNX)