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TD SYNNEX (SNX) to Report Q4 Earnings: What's in Store?

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TD SYNNEX (SNX - Free Report) is scheduled to release fourth-quarter fiscal 2021 results on Jan 20.

TD SYNNEX was formerly known as SYNNEX Corporation but the company changed its name after the acquisition of Tech Data Corporation on Sep 1, 2021.

For the fiscal fourth quarter, the company expects revenues between $15 billion and $16 billion. The Zacks Consensus Estimate for quarterly revenues is pegged at $15.52 billion, indicating a 109.3% increase from the prior-year period.

Moreover, the company projects fiscal fourth-quarter non-GAAP earnings between $2.50 and $2.80 per share. The consensus mark of $2.67 for quarterly earnings suggests a year-over-year decline of 48.8% from the year-ago quarter’s $5.21.

The company’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 15.4%.

TD SYNNEX Corp. Price and EPS Surprise

Factors at Play

The year-over-year expected increase in the top line is likely to have been due to revenues from the newly merged Tech Data Corporation’s business, partially offset by a loss of revenues from the separation of the company’s Concentrix business. The company split its Concentrix business into a separate publicly traded company on Dec 1, 2020. The separated business has been named Concentrix Corporation.

Moreover, TD SYNNEX’s fiscal fourth-quarter performance is likely to have benefited from the steady IT spending environment due to rapid digital transformation.

Increased demand for hardware and tools, which support remote working, is anticipated to have boosted TD SYNNEX’s revenues during the quarter under review. The pandemic-induced work-and-learn-from-home wave has been driving the sales of peripherals, software, communication, networking and consumer electronics products. This impressive demand trend is likely to have been conducive to SNX’s top line during the fiscal fourth quarter.

Additionally, the lockdown has bolstered the usage of online and e-commerce services globally. Also, the work-and-learn-from-home necessity has been stoking demand for cloud storage. Therefore, data-center operators are enhancing their capacities to accommodate the demand spike for cloud services, which is likely to have aided TD SYNNEX’s data-center servers and storage solution businesses during the fiscal fourth quarter.

However, the positive impact of the aforementioned factors might have been partially offset by prevailing supply-chain disruptions caused by the pandemic. Foreign-exchange headwinds are expected to have been an added concern.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for TD 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. However, that’s not the case here.

TD SYNNEX has an Earnings ESP of 0.00% and carries a Zacks Rank of 3 at present. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.

Stocks With the Favorable Combination

Per our model, Apple (AAPL - Free Report) , Advanced Micro Devices (AMD - Free Report) and MSCI (MSCI - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.

Apple is slated to report first-quarter fiscal 2022 results on Jan 27. The company carries a Zacks Rank #2 and has an Earnings ESP of +2.57% at present. Apple’s earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while meeting the same on one occasion, the average surprise being 22.3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for quarterly earnings is pegged at $1.89 per share, suggesting a year-over-year improvement of 12.5%. AAPL’s quarterly revenues are estimated to increase 6.2% year over year to $118.4 billion.

Advanced Micro Devices carries a Zacks Rank #2 and has an Earnings ESP of +3.77%. The company is expected to report fourth-quarter 2021 results on Jan 25. Advanced Micro Devices’ earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 14%.

The Zacks Consensus Estimate for AMD’s fourth-quarter earnings is pegged at 75 cents per share, indicating year-over-year growth of 44.2%. The consensus mark for revenues is pinned at $4.52 billion, suggesting a year-over-year increase of 39.3%.

MSCI currently carries a Zacks Rank #2 and has an Earnings ESP of +2.27%. The company is expected to report its fourth-quarter 2021 results on Jan 27. MSCI’s earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missing the same on one occasion, the average surprise being 4.6%.

The Zacks Consensus Estimate for MSCI’s fourth-quarter earnings stands at $2.49 per share, implying a year-over-year increase of 27%. MSCI is estimated to report revenues of $537 million, which suggest growth of 21% from the year-ago quarter.


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