SYNNEX Corporation (NYSE: SNX) stock rose over 2.2% on 12th Jan (as of 11:11 am GMT-5 ·; Source: Google finance) after the company posted higher than expected results for the fourth quarter of FY 20. Consolidated gross profit totaled $823 million, which is up 4% or $29 million compared to the prior year. The company posted gross margin was 11.1% compared to 12.1% the prior year. Total adjusted SG&A expense was $503 million or 6.8% of revenue, which is down $23 million compared to the year-ago quarter, mainly due to continued Concentrix synergies related to the Convergys acquisition and lower Concentrix variable operating expenses. Consolidated non-GAAP operating income was $388 million, up 15% versus the prior year. Non-GAAP operating margin was 5.2%, which expanded 10 basis points compared to the prior-year period. The company reported the total non-GAAP net income was $271 million, up 23% over the prior year.
Moreover, in Q4 Technology Solutions revenue was $6.1 billion, up 14% or $745 million over the prior-year quarter. However, Technology Solutions gross margin of 6% was 30 basis points lower than the prior-year quarter. Technology Solutions COVID-19 related incremental expense fell in Q4 due to a reduction in the amount related to doubtful accounts. The costs associated with staffing and remote work increased quarter-over-quarter. The company expects incremental quarterly costs at a minimum of $5 million in 2021 with the goal of creating other efficiencies to offset the majority of these impacts.
SNX in the fourth quarter of FY 20 has reported the adjusted earnings per share of $5.21, beating the analysts’ estimates for the adjusted earnings per share of $3.83, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 13 percent to $7.41 billion in the fourth quarter of FY 20, beating the analysts’ estimates for revenue by 12.88%.
Additionally, the company declared a quarterly cash dividend of $0.20 per common share, which will be payable on January 29, 2021 to stockholders of record as of the close of business on January 22, 2021
For the first quarter of 2021, the company expects revenue to be in the range of $4.50 billion to $4.80 billion. Q1 2021 non-GAAP net income is expected to be in the range of $81.0 million to $91.5 million. Non-GAAP diluted earnings per share is expected to be in the range of $1.55 to $1.75, based on estimated outstanding diluted weighted average shares of 51.8 million. After-tax amortization of intangibles is expected to be $7.3 million, or $0.14 per share. After-tax share-based compensation expense is expected to be $3.4 million, or $0.07 per share.