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Factors to Note Ahead of TD SYNNEX's (SNX) Q1 Earnings
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TD SYNNEX (SNX - Free Report) is scheduled to release first-quarter fiscal 2023 results on Mar 28.
TD SYNNEX was formerly known as SYNNEX Corporation. The company changed its name after the acquisition of Tech Data Corporation in 2021.
For the fiscal first quarter, the company expects revenues between $15.2 billion and $16.2 billion. The Zacks Consensus Estimate for quarterly revenues is pegged at $15.7 billion, indicating a marginal 1.7% increase from the prior-year period.
Moreover, SNX projects fiscal first-quarter non-GAAP earnings between $2.60 and $3 per share. The consensus mark of $2.83 for quarterly earnings suggests a year-over-year decrease of approximately 6.6% 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 8.1%.
Factors at Play
Slow growth expectations for the top and bottom lines are mainly due to the tough year-over-year comparisons as the merger of Tech Data Corporation in September 2021 suddenly boosted first-quarter fiscal 2022 revenues and earnings.
Furthermore, TD SYNNEX’s first-quarter revenues are likely to have been negatively impacted by unfavorable foreign currency exchange rates and interest rates. In its fourth-quarter results, the company stated that a stronger U.S. dollar against major currencies and interest rates would negatively impact first-quarter revenues by approximately $500 million and $33 million, respectively.
Additionally, enterprises are postponing the 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 first quarter.
However, the increased demand for hardware and tools, which supports 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 first quarter.
What Our Model States
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. But that’s not the case here.
TD SYNNEX has an Earnings ESP of 0.00% and a Zacks Rank #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, Meta Platforms (META - Free Report) , NCR Corporation and Alphabet (GOOGL - Free Report) have the right combination of elements to post earnings beat in the upcoming releases.
Meta Platforms has an Earnings ESP of +5.64% and sports a Zacks Rank #1 at present. The company is anticipated to report first-quarter 2023 results on Apr 26. META’s earnings beat the Zacks Consensus Estimate in two of the preceding four quarters, missing twice, the average surprise being 8.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for META’s quarterly earnings is pegged at $2.03 per share, suggesting a year-over-year decrease of 25.4%. Its quarterly revenues are estimated to fall 1.5% year over year to $27.48 billion.
NCR has an Earnings ESP of +35.80% and carries a Zacks Rank #3 at present. The company is likely to report its first-quarter 2023 results on Apr 25. The company’s earnings surpassed the Zacks Consensus Estimate in two the trailing four quarters, missing twice, the average surprise being negative 8.3%.
The Zacks Consensus Estimate for NCR’s first-quarter earnings is pegged at 41 cents per share, indicating 24.2% surge from the year-ago quarter’s earnings of 33 cents. The consensus mark for revenues is $1.84 billion, suggesting a year-over-year drop of 1.3%.
Alphabet has an Earnings ESP of +6.28% and currently has a Zacks Rank #3. The company is expected to report its first-quarter 2023 results on Apr 25. GOOGL’s earnings missed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being negative 8%.
The Zacks Consensus Estimate for GOOGL’s first-quarter earnings stands at $1.09 per share, implying a year-over-year decline of 11.4%. The company is estimated to report revenues of $57 billion, which is a 1.7% increase from year-ago quarter.
Image: Bigstock
Factors to Note Ahead of TD SYNNEX's (SNX) Q1 Earnings
TD SYNNEX (SNX - Free Report) is scheduled to release first-quarter fiscal 2023 results on Mar 28.
TD SYNNEX was formerly known as SYNNEX Corporation. The company changed its name after the acquisition of Tech Data Corporation in 2021.
For the fiscal first quarter, the company expects revenues between $15.2 billion and $16.2 billion. The Zacks Consensus Estimate for quarterly revenues is pegged at $15.7 billion, indicating a marginal 1.7% increase from the prior-year period.
TD SYNNEX Corp. Price and EPS Surprise
TD SYNNEX Corp. price-eps-surprise | TD SYNNEX Corp. Quote
Moreover, SNX projects fiscal first-quarter non-GAAP earnings between $2.60 and $3 per share. The consensus mark of $2.83 for quarterly earnings suggests a year-over-year decrease of approximately 6.6% 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 8.1%.
Factors at Play
Slow growth expectations for the top and bottom lines are mainly due to the tough year-over-year comparisons as the merger of Tech Data Corporation in September 2021 suddenly boosted first-quarter fiscal 2022 revenues and earnings.
Furthermore, TD SYNNEX’s first-quarter revenues are likely to have been negatively impacted by unfavorable foreign currency exchange rates and interest rates. In its fourth-quarter results, the company stated that a stronger U.S. dollar against major currencies and interest rates would negatively impact first-quarter revenues by approximately $500 million and $33 million, respectively.
Additionally, enterprises are postponing the 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 first quarter.
However, the increased demand for hardware and tools, which supports 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 first quarter.
What Our Model States
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. But that’s not the case here.
TD SYNNEX has an Earnings ESP of 0.00% and a Zacks Rank #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, Meta Platforms (META - Free Report) , NCR Corporation and Alphabet (GOOGL - Free Report) have the right combination of elements to post earnings beat in the upcoming releases.
Meta Platforms has an Earnings ESP of +5.64% and sports a Zacks Rank #1 at present. The company is anticipated to report first-quarter 2023 results on Apr 26. META’s earnings beat the Zacks Consensus Estimate in two of the preceding four quarters, missing twice, the average surprise being 8.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for META’s quarterly earnings is pegged at $2.03 per share, suggesting a year-over-year decrease of 25.4%. Its quarterly revenues are estimated to fall 1.5% year over year to $27.48 billion.
NCR has an Earnings ESP of +35.80% and carries a Zacks Rank #3 at present. The company is likely to report its first-quarter 2023 results on Apr 25. The company’s earnings surpassed the Zacks Consensus Estimate in two the trailing four quarters, missing twice, the average surprise being negative 8.3%.
The Zacks Consensus Estimate for NCR’s first-quarter earnings is pegged at 41 cents per share, indicating 24.2% surge from the year-ago quarter’s earnings of 33 cents. The consensus mark for revenues is $1.84 billion, suggesting a year-over-year drop of 1.3%.
Alphabet has an Earnings ESP of +6.28% and currently has a Zacks Rank #3. The company is expected to report its first-quarter 2023 results on Apr 25. GOOGL’s earnings missed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being negative 8%.
The Zacks Consensus Estimate for GOOGL’s first-quarter earnings stands at $1.09 per share, implying a year-over-year decline of 11.4%. The company is estimated to report revenues of $57 billion, which is a 1.7% increase from year-ago quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.