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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 2022 results on Jan 10.
TD SYNNEX was formerly known as SYNNEX Corporation. 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 $15.2 billion and $16.2 billion. The Zacks Consensus Estimate for quarterly revenues is pegged at $15.8 billion, indicating a marginal 1% increase from the prior-year period.
Moreover, SNX projects fiscal fourth-quarter non-GAAP earnings between $2.70 and $3.10 per share. The consensus mark of $2.92 for quarterly earnings suggests a year-over-year increase of approximately 2.1% from the year-ago quarter’s $2.86 per share.
The company’s earnings surpassed the Zacks Consensus Estimate thrice in the trailing four quarters while missing the same on one occasion, the average surprise being 5.5%.
Slow growth expectations for the top and bottom lines are mainly due to tough year-over-year comparisons as the merger of Tech Data Corporation in September 2021 suddenly boosted fourth-quarter fiscal 2021 revenues and earnings.
Furthermore, TD SYNNEX’s fourth-quarter revenues are likely to have been negatively impacted by unfavorable foreign currency exchange rates. In its third-quarter results, the company stated that a stronger U.S. dollar against major currencies would negatively impact fourth-quarter revenues by approximately $700 million.
Additionally, enterprises are postponing their large IT spending plans due to a weakening global economy amid ongoing macroeconomic and geopolitical issues. This may have hurt TD SYNNEX’s overall financial performance in the fourth quarter.
However, the increased demand for hardware and tools, which support hybrid working, is anticipated to have somewhat mitigated the negative impact of the aforementioned factors. The growing hybrid working trend has been driving the sales of peripherals, software, communication, networking and consumer electronic products.
The increased usage of online and e-commerce services, along with the hybrid working trend, has been stoking the demand for cloud storage. Therefore, data center operators are enhancing their capacities to accommodate the demand spike for cloud services. This is likely to have aided SNX’s data center servers and storage solution businesses in the fiscal fourth quarter.
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 4 (Sell) 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, CACI International (CACI - Free Report) , Lam Research (LRCX - Free Report) and MSCI (MSCI - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
CACI is expected to report second-quarter fiscal 2023 results on Jan 25. The company has a Zacks Rank #3 and an Earnings ESP of +3.05% at present. CACI’s earnings beat the Zacks Consensus Estimate twice in the trailing four quarters while missing the same on two occasions, the average surprise being -1.1%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for second-quarter earnings is pegged at $4.32 per share, suggesting an improvement of 12.8% from the year-ago quarter’s earnings of $3.83. CACI’s quarterly revenues are estimated to increase 8% year over year to $1.6 billion.
Lam Research carries a Zacks Rank #3 and has an Earnings ESP of +0.42%. The company is slated to report second-quarter fiscal 2023 results on Jan 25. Lam Research’s earnings surpassed the Zacks Consensus Estimate thrice in the trailing four quarters while missing the same on one occasion, the average surprise being 7.4%.
The Zacks Consensus Estimate for LRCX’s second-quarter earnings is pegged at $9.96 per share, indicating a year-over-year increase of 16.8%. The consensus mark for revenues stands at $5.1 billion, suggesting a year-over-year increase of 20.3%.
MSCI carries a Zacks Rank #3 and has an Earnings ESP of +2.34%. The company is scheduled to report its fourth-quarter 2022 results on Jan 31. MSCI’s earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missing the same once, the average surprise being 3.7%.
The Zacks Consensus Estimate for MSCI’s fourth-quarter earnings stands at $2.71 per share, implying a year-over-year increase of 8%. MSCI is estimated to report revenues of $563.8 million, which suggests growth of 2.5% from the year-ago quarter.
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TD SYNNEX (SNX) to Report Q4 Earnings: What's in Store?
TD SYNNEX (SNX - Free Report) is scheduled to release fourth-quarter fiscal 2022 results on Jan 10.
TD SYNNEX was formerly known as SYNNEX Corporation. 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 $15.2 billion and $16.2 billion. The Zacks Consensus Estimate for quarterly revenues is pegged at $15.8 billion, indicating a marginal 1% increase from the prior-year period.
Moreover, SNX projects fiscal fourth-quarter non-GAAP earnings between $2.70 and $3.10 per share. The consensus mark of $2.92 for quarterly earnings suggests a year-over-year increase of approximately 2.1% from the year-ago quarter’s $2.86 per share.
The company’s earnings surpassed the Zacks Consensus Estimate thrice in the trailing four quarters while missing the same on one occasion, the average surprise being 5.5%.
TD SYNNEX Corp. Price and EPS Surprise
TD SYNNEX Corp. price-eps-surprise | TD SYNNEX Corp. Quote
Factors to Consider
Slow growth expectations for the top and bottom lines are mainly due to tough year-over-year comparisons as the merger of Tech Data Corporation in September 2021 suddenly boosted fourth-quarter fiscal 2021 revenues and earnings.
Furthermore, TD SYNNEX’s fourth-quarter revenues are likely to have been negatively impacted by unfavorable foreign currency exchange rates. In its third-quarter results, the company stated that a stronger U.S. dollar against major currencies would negatively impact fourth-quarter revenues by approximately $700 million.
Additionally, enterprises are postponing their large IT spending plans due to a weakening global economy amid ongoing macroeconomic and geopolitical issues. This may have hurt TD SYNNEX’s overall financial performance in the fourth quarter.
However, the increased demand for hardware and tools, which support hybrid working, is anticipated to have somewhat mitigated the negative impact of the aforementioned factors. The growing hybrid working trend has been driving the sales of peripherals, software, communication, networking and consumer electronic products.
The increased usage of online and e-commerce services, along with the hybrid working trend, has been stoking the demand for cloud storage. Therefore, data center operators are enhancing their capacities to accommodate the demand spike for cloud services. This is likely to have aided SNX’s data center servers and storage solution businesses in the fiscal fourth quarter.
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 4 (Sell) 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, CACI International (CACI - Free Report) , Lam Research (LRCX - Free Report) and MSCI (MSCI - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
CACI is expected to report second-quarter fiscal 2023 results on Jan 25. The company has a Zacks Rank #3 and an Earnings ESP of +3.05% at present. CACI’s earnings beat the Zacks Consensus Estimate twice in the trailing four quarters while missing the same on two occasions, the average surprise being -1.1%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for second-quarter earnings is pegged at $4.32 per share, suggesting an improvement of 12.8% from the year-ago quarter’s earnings of $3.83. CACI’s quarterly revenues are estimated to increase 8% year over year to $1.6 billion.
Lam Research carries a Zacks Rank #3 and has an Earnings ESP of +0.42%. The company is slated to report second-quarter fiscal 2023 results on Jan 25. Lam Research’s earnings surpassed the Zacks Consensus Estimate thrice in the trailing four quarters while missing the same on one occasion, the average surprise being 7.4%.
The Zacks Consensus Estimate for LRCX’s second-quarter earnings is pegged at $9.96 per share, indicating a year-over-year increase of 16.8%. The consensus mark for revenues stands at $5.1 billion, suggesting a year-over-year increase of 20.3%.
MSCI carries a Zacks Rank #3 and has an Earnings ESP of +2.34%. The company is scheduled to report its fourth-quarter 2022 results on Jan 31. MSCI’s earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missing the same once, the average surprise being 3.7%.
The Zacks Consensus Estimate for MSCI’s fourth-quarter earnings stands at $2.71 per share, implying a year-over-year increase of 8%. MSCI is estimated to report revenues of $563.8 million, which suggests growth of 2.5% from the year-ago quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.