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SYNNEX (SNX) to Report Q2 Earnings: What's in the Cards?

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SYNNEX Corporation (SNX - Free Report) is slated to release second-quarter fiscal 2021 results on Jun 24.

For the quarter, the company expects revenues between $4.7 billion and $5 billion. The Zacks Consensus Estimate for fiscal second-quarter revenues is pegged at $4.91 billion, indicating an 11.24% decline from the prior-year quarter’s figure.

Moreover, the company projects non-GAAP earnings between $1.80 and $2 per share. The consensus mark for earnings of $1.91 suggests year-over-year growth of 4.37% from the year-ago quarter.

The company’s earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 87.55%.

SYNNEX Corporation Price and EPS Surprise

SYNNEX Corporation Price and EPS Surprise

SYNNEX Corporation price-eps-surprise | SYNNEX Corporation Quote

Factors at Play

SYNNEX’s fiscal second-quarter performance is likely to have benefited from increased demand for hardware and tools, which support remote working. Notably, the COVID-19 pandemic-led work-and-learn-from-home wave is likely to have bolstered sales of peripherals, software, communication, networking and consumer electronics products. This impressive demand trend is anticipated to have been conducive to SYNNEX’s top-line performance during the quarter under review.

Additionally, the work-and-learn-from-home necessity has been stoking demand for cloud storage. Furthermore, the increased usage of online and e-commerce services globally is prompting data-center operators to enhance their capacities to accommodate the demand spike for cloud services. This is likely to have benefited SYNNEX’s data-center servers and storage solution businesses during the fiscal second quarter.

Nonetheless, the positive impacts of the aforementioned factors might have been partially offset by the persisting supply-chain disruptions caused by the pandemic.

What Our Model Says

Our proven model predicts an earnings beat for SYNNEX this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the chances of an earnings beat, which is the case here. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.

SYNNEX has an Earnings ESP of +1.44% and a Zacks Rank of 3, at present.

Other Stocks With Favorable Combinations

Here are some companies, which, per our model, have the right combination of elements to post an earnings beat this season:

Avnet, Inc. (AVT - Free Report) has an Earnings ESP of +4.98% and currently, a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Adobe Inc. (ADBE - Free Report) has an Earnings ESP of +2.26% and a Zacks Rank of 3 currently.

DXC Technology Company (DXC - Free Report) has an Earnings ESP of +0.40% and a Zacks Rank #3, at present.

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Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

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Avnet, Inc. (AVT) - free report >>

Adobe Inc. (ADBE) - free report >>

SYNNEX Corporation (SNX) - free report >>

DXC Technology Company. (DXC) - free report >>