Synnex lowers Q1 estimates

Synnex has updated its revenue and earnings outlook for Q1 of 2005, causing shares to plummet 18 per cent.

The company is forecasting quarterly EPS of $0.31 to $0.33 on total revenue of $1.34 billion to $1.35 billion, which is below Wall Street expectations, due to increased competition and soft demand.

Analysts were expecting Synnex to post EPS of $0.38 for the quarter on sales of $1.42 billion.

President/CEO Robert Huang said: "We did see increasing competitiveness in the IT channel in the later stages of Q1, along with a mild reduction in demand versus our expectations. These factors affected our ability to achieve our distribution sales goals for the quarter."