Information technology products distributor TD Synnex (SNX) delivered mixed fiscal third-quarter results for its legacy Synnex business on Tuesday. SNX stock dropped in early trading.
Synnex earned an adjusted $2.14 a share on sales of $5.21 billion in the quarter ended Aug. 31. Analysts expected it to earn $2.03 a share on sales of $5.32 billion, according to FactSet. On a year-over-year basis, Synnex earnings rose 14% while sales declined 2%.
“Ongoing industry-wide supply chain shortages led to a slight year-over-year revenue decline for legacy Synnex in the fiscal third quarter,” Chief Financial Officer Marshall Witt said in a news release.
It was the final quarterly report for Synnex before its merger with Tech Data to form TD Synnex. Clearwater, Fla.-based Tech Data and Fremont, Calif.-based Synnex announced the completion of their merger on Sept. 1.
SNX Stock Slides
In premarket trading on the stock market today, SNX stock fell 2.9%, near 110. On Monday, SNX stock rose 1.6% to 113.25.
TD Synnex is a leading global distributor and solutions aggregator for the IT industry. It has more than 150,000 customers in over 100 countries. TD Synnex sells products and services from over 1,500 vendors. Its offerings cover such high-growth markets as cloud computing, cybersecurity, Big Data and analytics, Internet of Things, mobility, and everything as a service.
SNX stock ranks second out of five stocks in IBD’s Wholesale-Electronics industry group, according to IBD Stock Checkup. It has an IBD Composite Rating of 82. IBD’s Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
YOU MAY ALSO LIKE: