Synnex Corporation Common Stock (SNX) will report earnings results on after market close on Tuesday, March 27, 2012.
SNX is expected to earn $0.91 for its 1st quarter. Top Equity News expects the leading business process services company to report earnings that will beat Wall Street’s expectations. TEN’s estimate is 98 cents – a 7 cent upside surprise.
For 16 straight quarters the Fortune 500 company has surpassed the consensus number. Nine of the 16 announcements have been surrounded by gains, with 8 being of the handsome variety.
Synnex has solid fundamentals. The stock trades with a forward P/E of 9.10, which is very much in line with next year’s projected earnings growth rate of 9.7%. Additionally, shares are valued for 15 cents for every dollar per share SNX generates in sales. Both metrics are well below the industry averages of 20.76 and 1.54 respectively.
SNX has been bouncing along near a 52-week high for most of March. Volume has been rolling downhill as earnings approach; however, shares have managed to float above Synnex’s 12-day moving average despite the lack of conviction. That will all change next Tuesday.
If the TEN forecast is correct and management delivers upbeat guidance, a typical post-eps move of 7-8% is reasonable. Should the announcement fall short, a trip to $40 is the logical downside destination.
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