SYNNEX Corp. Shares Up 10% Since Q4 Beat Announcement

• Wall Street's expectations for TD SYNNEX are set at an EPS of $2.76 and projected revenues of $14.1 billion for the quarter.
• The stability of the consensus EPS estimate highlights analyst confidence in TD SYNNEX's performance, potentially leading to positive stock price movements.
• TD SYNNEX's previous quarter's financials, including a revenue of $13.98 billion and a net income of $172.13 million, lay a solid foundation for the anticipated results.

On Tuesday, June 25, 2024, TD SYNNEX (NYSE:SNX) is poised to unveil its earnings report for the quarter ending in May 2024. This event is highly anticipated by investors and analysts alike, as earnings reports are a crucial indicator of a company's financial health and operational efficiency. TD SYNNEX, a leading player in the information technology sector, specializes in IT distribution and comprehensive supply chain services. The company operates in a competitive landscape, going head-to-head with other major distributors and service providers in the technology industry.

Wall Street's expectations for SNX's upcoming earnings are set at an earnings per share (EPS) of $2.76, with projected revenues of $14.1 billion for the quarter. These figures represent a significant milestone for the company, indicating a 13.6% increase in EPS from the same quarter last year and a modest year-over-year revenue growth of 0.4%. Such growth is noteworthy in the context of the global IT distribution market, which is characterized by fierce competition and rapid technological advancements.

The stability of the consensus EPS estimate, which has remained unchanged over the past month, underscores the confidence analysts have in TD SYNNEX's performance. This steadiness is a positive signal to investors, as fluctuations in earnings estimates can lead to volatility in stock prices. The link between earnings estimate revisions and stock price movements is well-documented, with stable or positive revisions often leading to upward trends in stock prices.

As TD SYNNEX gears up to release its quarterly earnings, the focus will be on whether the company can meet or exceed the Wall Street estimates. Achieving an EPS of $2.76 and revenues of $14.12 billion would not only reflect the company's robust operational capabilities but also its ability to navigate the complexities of the global supply chain and maintain growth amidst competitive pressures.

The financial metrics from the previous quarter further highlight TD SYNNEX's strong performance, with a reported revenue of $13.98 billion and a net income of $172.13 million. These figures, along with a gross profit of $899.03 million and an operating income of $328.1 million, set a solid foundation for the company's anticipated quarterly results. As investors and market watchers await the earnings report, the key will be to see how these past achievements translate into continued growth and stability for TD SYNNEX in the competitive landscape of IT distribution and services.

SYNNEX (NYSE:SNX) shares fell more than 7% intra-day today after the company reported its Q2 earnings results, with EPS of $2.43 coming in worse than the Street estimate of $2.55. Revenue fell 7.9% year-over-year to $14.06 billion, missing the Street estimate of $14.44 billion.

According to CEO Rich Hume, the company’s exceptional range of products and services, covering all stages of the process, enabled them to achieve growth in Advanced Solutions and high-growth technologies. This success came at a time when the industry faced decreased demand for PC ecosystem products due to the ongoing effects of the post-pandemic decline.

For Q2/23, the company expects EPS to be in the range of $2.20-$2.70, compared to the Street estimate of $2.76, and revenue in the range of $13.5-$14.5 billion, compared to the Street estimate of $14.986 billion.

RBC Capital analysts provided their outlook on TD SYNNEX (NYSE:SNX) ahead of the company’s upcoming Q2 earnings report next month.

The analysts expect largely in-line Q2/23 results as cautious IT spending trends continue. They see solid Advanced Solutions dynamics continuing in the near term as management focuses on pivoting to areas of higher growth in advanced solutions and high-growth technologies (e.g., cybersecurity/analytics/cloud/IoT/digital transformation).

The analysts continue to expect the overall backlog for Advanced Solutions (approximately 35-40% of revenue) to further stabilize in the second half of the year while the spending outlook for PCs remains challenged in the near term but benefits from easier comps in the second half of the year. The analysts reiterated their Sector Perform rating and $110 price target on the stock.

SYNNEX Corp. (NYSE:SNX) shares gained more than 10% since the company’s reported Q4 results on Tuesday, with EPS of $3.44 coming in better than the Street estimate of $2.93. Revenue was $16.2 billion, beating the Street estimate of $15.79 billion. The beat was driven by stable distribution demand and robust 20%+ growth in the high-growth areas.

The company expects Q1/23 EPS to be in the range of $2.60-$3.00, compared to the Street estimate of $3.05, and revenue in the range of $15.2-16.2 billion, compared to the Street estimate of $15.85 billion. Management guided fiscal 2023 revenue growth of 3-5% as supply chains normalize, but macro nervousness remains.