SYNNEX Corporation (NYSE: SNX) stock recovered 1.32% on October 3^rd, 2018 (Source: Google finance) after the company posted better than expected results for the third quarter of FY 18. The stock slightly corrected over 1.4% in the pre market session trade on October 4^th, 2018.

The third quarter gross profit dollars had totaled $433 million, up 16% or $58 million versus a year ago. The increase in gross profit dollars was primarily driven by positive contribution from the Westcon-Comstor acquisition and year-over-year revenue growth in the Technology Solutions segment. The company’s gross margin was 8.8%, an improvement of 6 basis points from the prior year quarter. Technology Solutions and Concentrix both reflected expansions in gross margins. The increase in the Technology Solutions gross margin was driven by the Westcon-Comstor acquisition and due to product and services mix. Concentrix’s gross margins were materially higher than the prior year period.

Moreover, accounts receivable totaled $3 billion on August 31, 2018 for a DSO of 55 days, up 15 days from the prior year quarter primarily due to the impact of the Westcon-Comstor acquisition and timing. Inventories totaled $2 billion or 42 days at the end of the third quarter, improved 11 days year-over-year. This is reflective of inventory management efficiencies, higher stocking requirements in our Hyve business during fiscal 2017 due to component shortages and the impact of the Westcon-Comstor acquisition. SNX in the third quarter of FY 18 has reported the adjusted earnings per share of $2.57, beating the analysts’ estimates for the adjusted earnings per share of $2.46, as per analysts polled by Thomson Reuters. The company had reported the adjusted revenue growth of 15 percent to $4.91 billion in the third quarter of FY 18, beating the analysts’ estimates for revenue of $4.88 billion. Technology Solutions revenue was $4.4 billion, representing an increase of 17% over the prior year period. Concentrix revenue was at $492 million, down 1% from $496 million in the prior year quarter. Adjusted for FX, Concentrix revenue was consistent with the prior year period.

For the fourth quarter 208, SNX expects the revenue to be in the range of $5.2 billion to $5.4 billion. Net income on a Non-GAAP basis is expected to be in the range of $136.8 million to $146.4 million. On a Non-GAAP basis, diluted earnings per share is expected to be in the range of $2.90 to $3.10. After-tax amortization of intangibles is expected to be $49.8 million, or $1.05 per share and after-tax acquisition-related and integration expenses are expected to be $38.7 million, $0.82 per share.