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TD SYNNEX (SNX) to Report Q3 Earnings: What's in Store?
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TD SYNNEX (SNX - Free Report) is scheduled to report third-quarter fiscal 2023 results on Sep 26.
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 third quarter, TD SYNNEX expects revenues between $13.5 billion and $14.5 billion. The Zacks Consensus Estimate for quarterly revenues is pegged at $14.04 billion, indicating an 8.6% decrease from the prior-year period.
Moreover, SNX projects fiscal third-quarter non-GAAP earnings between $2.20 and $2.70 per share. The consensus mark of $2.47 for quarterly earnings suggests a year-over-year decrease of approximately 9.9% from the year-ago quarter’s $2.74 per share.
The company’s earnings surpassed the Zacks Consensus Estimate twice in the trailing four quarters while missing on two occasions, the average surprise being 4.6%.
TD SYNNEX’s third-quarter revenues are likely to have been negatively impacted by softening IT spending as enterprises are postponing large IT spending plans due to a weakening global economy amid ongoing macroeconomic and geopolitical issues.
Weak demand for the company’s Endpoint Solutions amid softness in PC demand post-pandemic might have hurt its third-quarter performance. However, increasing sales across the Advanced Solutions portfolio and high-growth technologies, with demand driven by cloud and data center-related technologies, are anticipated to have partially offset the softness in Endpoint Solutions sales.
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 third quarter.
However, the higher interest rate is expected to have negatively impacted TD SYNNEX’s bottom-line performance. The company’s second-quarter non-GAAP earnings per share plunged 10.7% year over year, primarily due to lower revenues and a $26-million headwind from higher interest expenses.
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 #3 and has an Earnings ESP of 0.00%. 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, Netflix (NFLX - Free Report) , Equifax (EFX - Free Report) and Alphabet (GOOGL - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
Netflix is slated to report third-quarter 2023 results on Oct 18. The company has a Zacks Rank #3 and an Earnings ESP of +2.69% at present. Netflix’s earnings beat the Zacks Consensus Estimate thrice in the trailing four quarters while missing on one occasion, the average surprise being -2.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for NFLX’s third-quarter earnings is pegged at $3.49 per share, suggesting growth of 12.6% from the year-ago quarter’s earnings of $3.10. Netflix’s quarterly revenues are estimated to increase 7.6% year over year to $8.53 billion.
Equifax carries a Zacks Rank #3 and has an Earnings ESP of +0.28%. The company is anticipated to report third-quarter 2023 results on Oct 18. Its earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 3.7%.
The Zacks Consensus Estimate for Equifax’s third-quarter earnings stands at $1.78 per share, implying a year-over-year increase of 2.9%. It is estimated to report revenues of $1.33 billion, which suggests an increase of approximately 6.9% from the year-ago quarter.
Alphabet carries a Zacks Rank #3 and has an Earnings ESP of +1.04%. The company is expected to report third-quarter 2023 results on Oct 24. Its earnings surpassed the Zacks Consensus Estimate twice in the trailing four quarters while missing on two occasions, the average surprise being -0.9%.
The Zacks Consensus Estimate for GOOGL’s third-quarter earnings is pegged at $1.45 per share, indicating a year-over-year increase of 36.8%. The consensus mark for revenues stands at $63.2 billion, suggesting a year-over-year rise of 10.3%.
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TD SYNNEX (SNX) to Report Q3 Earnings: What's in Store?
TD SYNNEX (SNX - Free Report) is scheduled to report third-quarter fiscal 2023 results on Sep 26.
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 third quarter, TD SYNNEX expects revenues between $13.5 billion and $14.5 billion. The Zacks Consensus Estimate for quarterly revenues is pegged at $14.04 billion, indicating an 8.6% decrease from the prior-year period.
Moreover, SNX projects fiscal third-quarter non-GAAP earnings between $2.20 and $2.70 per share. The consensus mark of $2.47 for quarterly earnings suggests a year-over-year decrease of approximately 9.9% from the year-ago quarter’s $2.74 per share.
The company’s earnings surpassed the Zacks Consensus Estimate twice in the trailing four quarters while missing on two occasions, the average surprise being 4.6%.
TD SYNNEX Corp. Price and EPS Surprise
TD SYNNEX Corp. price-eps-surprise | TD SYNNEX Corp. Quote
Factors at Play
TD SYNNEX’s third-quarter revenues are likely to have been negatively impacted by softening IT spending as enterprises are postponing large IT spending plans due to a weakening global economy amid ongoing macroeconomic and geopolitical issues.
Weak demand for the company’s Endpoint Solutions amid softness in PC demand post-pandemic might have hurt its third-quarter performance. However, increasing sales across the Advanced Solutions portfolio and high-growth technologies, with demand driven by cloud and data center-related technologies, are anticipated to have partially offset the softness in Endpoint Solutions sales.
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 third quarter.
However, the higher interest rate is expected to have negatively impacted TD SYNNEX’s bottom-line performance. The company’s second-quarter non-GAAP earnings per share plunged 10.7% year over year, primarily due to lower revenues and a $26-million headwind from higher interest expenses.
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 #3 and has an Earnings ESP of 0.00%. 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, Netflix (NFLX - Free Report) , Equifax (EFX - Free Report) and Alphabet (GOOGL - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
Netflix is slated to report third-quarter 2023 results on Oct 18. The company has a Zacks Rank #3 and an Earnings ESP of +2.69% at present. Netflix’s earnings beat the Zacks Consensus Estimate thrice in the trailing four quarters while missing on one occasion, the average surprise being -2.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for NFLX’s third-quarter earnings is pegged at $3.49 per share, suggesting growth of 12.6% from the year-ago quarter’s earnings of $3.10. Netflix’s quarterly revenues are estimated to increase 7.6% year over year to $8.53 billion.
Equifax carries a Zacks Rank #3 and has an Earnings ESP of +0.28%. The company is anticipated to report third-quarter 2023 results on Oct 18. Its earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 3.7%.
The Zacks Consensus Estimate for Equifax’s third-quarter earnings stands at $1.78 per share, implying a year-over-year increase of 2.9%. It is estimated to report revenues of $1.33 billion, which suggests an increase of approximately 6.9% from the year-ago quarter.
Alphabet carries a Zacks Rank #3 and has an Earnings ESP of +1.04%. The company is expected to report third-quarter 2023 results on Oct 24. Its earnings surpassed the Zacks Consensus Estimate twice in the trailing four quarters while missing on two occasions, the average surprise being -0.9%.
The Zacks Consensus Estimate for GOOGL’s third-quarter earnings is pegged at $1.45 per share, indicating a year-over-year increase of 36.8%. The consensus mark for revenues stands at $63.2 billion, suggesting a year-over-year rise of 10.3%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.