Technology distributor Synnex Corp posted a better-than-expected quarterly profit, helped by lower costs and an 18 percent rise in its global business service revenue, and forecast fourth-quarter results in line with Wall Street expectations.
Synnex expects a fourth-quarter profit of 72 cents to 75 cents a share on revenue of $2.03 billion to $2.13 billion.
Analysts were expecting the company to earn 72 cents a share, excluding items, on revenue of $2.03 billion, according to Reuters Estimates.
For the third quarter, the company earned $23.1 million, or 67 cents a share, compared with $22.1 million, or 66 cents a share, a year ago.
Revenue fell 2 percent to $2.01 billion.
However, revenue from its global business services segment, which includes customer management and back office processing, rose 18 percent to $34.51 million.
Analysts expected the company to earn 61 cents a share on revenue of $1.86 billion.
Synnex purchases information technology systems and peripherals from manufacturers such as Hewlett-Packard and Lenovo and sells them to resellers.
Shares of the Fremont, California-based company closed at $32.14 Monday on the New York Stock Exchange.
(Reporting by Manasi Phadke in Bangalore; Editing by Pradeep Kurup)