EmailSynnex (SNX $31.02 -1.84) reported second quarter earnings of $0.90 per share, in-line with the Capital IQ consensus of $0.90, while revenues fell 0.5% year/year to $2.48 billion versus the $2.51 bln consensus. The company issued downside guidance for the third quarter with EPS of $0.91-0.95 versus the $1.01 consensus and revenues of $2.55-2.65 billion versus the $2.68 billion consensus. "Our guidance reflects strong execution in our distribution business given the more muted outlook for the continuing economic recovery and the ongoing year-over-year transition of certain customer gross revenue to a net fee for service logistics relationship.
While earnings in the prior year third quarter included some exceptional items, including a large benefit to GBS SG&A for a contingent M&A credit, this year's third quarter outlook reflects a more normalized profit margin for our distribution segment and continued progress in our GBS segment."
