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TD SYNNEX (SNX) to Report Q2 Earnings: What's in the Offing?
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TD SYNNEX (SNX - Free Report) is scheduled to release second-quarter fiscal 2023 results on Jun 27.
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 second quarter, TD SYNNEX expects revenues between $14 billion and $15 billion. The Zacks Consensus Estimate for quarterly revenues is pegged at $14.4 billion, indicating a 5.9% decrease from the prior-year period.
Moreover, SNX projects fiscal second-quarter non-GAAP earnings between $2.25 and $2.75 per share. The consensus mark of $2.50 for quarterly earnings suggests a year-over-year decrease of approximately 8.1% from the year-ago quarter’s $2.72 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 6.3%.
TD SYNNEX’s second-quarter revenues are likely to have been negatively impacted by unfavorable foreign currency exchange rates and interest rates. In its first-quarter results, the company stated that a stronger U.S. dollar against major currencies would negatively impact second-quarter revenues by approximately $200 million, while a higher interest rate would have a negative impact of $30 million on the bottom line.
Additionally, enterprises are postponing 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 second 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 second 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.
SNX currently carries a Zacks Rank #4 (Sell) and has an Earnings ESP of -3.01%. 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, Intel (INTC - Free Report) , Apple (AAPL - Free Report) and Five9 (FIVN - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
Intel is expected to report second-quarter 2023 results on Jul 27. The company has a Zacks Rank #3 and an Earnings ESP of +47.37% at present. Intel’s earnings beat the Zacks Consensus Estimate twice in the trailing four quarters while missing the same on two occasions, the average surprise being 10.1%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for INTC’s second-quarter earnings is pegged at 4 cents per share, suggesting a decline of 113.8% from the year-ago quarter’s earnings of 29 cents. Intel’s quarterly revenues are estimated to decrease 21.6% year over year to $12.01 billion.
Apple carries a Zacks Rank #3 and has an Earnings ESP of +3.39%. The company is anticipated to report third-quarter fiscal 2023 results on Jul 27. Its earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missing the same on one occasion, the average surprise being 2.7%.
The Zacks Consensus Estimate for Apple’s third-quarter earnings stands at $1.18 per share, implying a year-over-year decrease of 1.7%. It is estimated to report revenues of $81.2 billion, which suggests a decline of approximately 2.2% from the year-ago quarter.
Five9 carries a Zacks Rank #3 and has an Earnings ESP of +1.28%. The company is expected to report second-quarter 2023 results on Jul 27. Its earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 49.9%.
The Zacks Consensus Estimate for FIVN’s second-quarter earnings is pegged at 39 cents per share, indicating a year-over-year increase of 14.7%. The consensus mark for revenues stands at $214.1 million, suggesting a year-over-year rise of 13.1%.
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TD SYNNEX (SNX) to Report Q2 Earnings: What's in the Offing?
TD SYNNEX (SNX - Free Report) is scheduled to release second-quarter fiscal 2023 results on Jun 27.
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 second quarter, TD SYNNEX expects revenues between $14 billion and $15 billion. The Zacks Consensus Estimate for quarterly revenues is pegged at $14.4 billion, indicating a 5.9% decrease from the prior-year period.
Moreover, SNX projects fiscal second-quarter non-GAAP earnings between $2.25 and $2.75 per share. The consensus mark of $2.50 for quarterly earnings suggests a year-over-year decrease of approximately 8.1% from the year-ago quarter’s $2.72 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 6.3%.
TD SYNNEX Corp. Price and EPS Surprise
TD SYNNEX Corp. price-eps-surprise | TD SYNNEX Corp. Quote
Factors at Play
TD SYNNEX’s second-quarter revenues are likely to have been negatively impacted by unfavorable foreign currency exchange rates and interest rates. In its first-quarter results, the company stated that a stronger U.S. dollar against major currencies would negatively impact second-quarter revenues by approximately $200 million, while a higher interest rate would have a negative impact of $30 million on the bottom line.
Additionally, enterprises are postponing 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 second 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 second 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.
SNX currently carries a Zacks Rank #4 (Sell) and has an Earnings ESP of -3.01%. 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, Intel (INTC - Free Report) , Apple (AAPL - Free Report) and Five9 (FIVN - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
Intel is expected to report second-quarter 2023 results on Jul 27. The company has a Zacks Rank #3 and an Earnings ESP of +47.37% at present. Intel’s earnings beat the Zacks Consensus Estimate twice in the trailing four quarters while missing the same on two occasions, the average surprise being 10.1%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for INTC’s second-quarter earnings is pegged at 4 cents per share, suggesting a decline of 113.8% from the year-ago quarter’s earnings of 29 cents. Intel’s quarterly revenues are estimated to decrease 21.6% year over year to $12.01 billion.
Apple carries a Zacks Rank #3 and has an Earnings ESP of +3.39%. The company is anticipated to report third-quarter fiscal 2023 results on Jul 27. Its earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missing the same on one occasion, the average surprise being 2.7%.
The Zacks Consensus Estimate for Apple’s third-quarter earnings stands at $1.18 per share, implying a year-over-year decrease of 1.7%. It is estimated to report revenues of $81.2 billion, which suggests a decline of approximately 2.2% from the year-ago quarter.
Five9 carries a Zacks Rank #3 and has an Earnings ESP of +1.28%. The company is expected to report second-quarter 2023 results on Jul 27. Its earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 49.9%.
The Zacks Consensus Estimate for FIVN’s second-quarter earnings is pegged at 39 cents per share, indicating a year-over-year increase of 14.7%. The consensus mark for revenues stands at $214.1 million, suggesting a year-over-year rise of 13.1%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.