Computer products distributor Synnex Inc. (NYSE: SNX) is watching its share price plummet today following its first quarter earnings report released last night after the markets closed. The company reported EPS of $1.02 on revenue of $2.46 billion, but its second-quarter forecast is what is causing the damage.
Synnex is forecasting EPS of $0.87-$0.91, lower than analysts consensus estimate of $0.95. Revenue is forecast at $2.45-$2.55 billion, again lower than the consensus estimate of $2.6 billion. Net income is expected to drop from $38.2 million in the first quarter to $33.3-$34.5 million.
The company attributed the lower forecast to a switch-over to a fee-for-service model this year. Synnex expects a hit of $80-$100 million in its gross revenue from the change.
Shares are down -14% at $37.52 in a 52-week range of $22.56-$44.25.