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Why TD SYNNEX (SNX) International Revenue Trends Deserve Your Attention

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Did you analyze how TD SYNNEX (SNX - Free Report) fared in its international operations for the quarter ending May 2025? Given the widespread global presence of this high-tech contractor, scrutinizing the trends in international revenues becomes imperative to assess its financial strength and future growth possibilities.

The global economy today is deeply interlinked, making a company's engagement with international markets a critical factor in determining its financial success and growth path. It has become essential for investors to comprehend how much a company relies on these foreign markets, as this understanding reveals the firm's potential for consistent earnings, its capacity to harness different economic cycles, and its overall growth prospects.

Being present in international markets serves as a counterbalance to domestic economic challenges while offering chances to engage with more rapidly evolving economies. However, this kind of diversification introduces challenges like currency fluctuations, geopolitical uncertainties and varying market trends.

In our recent assessment of SNX's quarterly performance, we discovered notable trends in its overseas revenue sections, which are typically modeled and scrutinized by Wall Street analysts.

The recent quarter saw the company's total revenue reaching $14.95 billion, marking an improvement of 7.2% from the prior-year quarter. Next, we'll examine the breakdown of SNX's revenue from abroad to comprehend the significance of its international presence.

A Look into SNX's International Revenue Streams

Europe generated $4.89 billion in revenues for the company in the last quarter, constituting 32.72% of the total. This represented a surprise of +7.7% compared to the $4.54 billion projected by Wall Street analysts. Comparatively, in the previous quarter, Europe accounted for $5.14 billion (35.36%), and in the year-ago quarter, it contributed $4.43 billion (31.74%) to the total revenue.

Asia-Pacific and Japan accounted for 7.01% of the company's total revenue during the quarter, translating to $1.05 billion. Revenues from this region represented a surprise of +2.1%, with Wall Street analysts collectively expecting $1.03 billion. When compared to the preceding quarter and the same quarter in the previous year, Asia-Pacific and Japan contributed $1 billion (6.91%) and $963.56 million (6.91%) to the total revenue, respectively.

Anticipated Revenues in Overseas Markets

For the current fiscal quarter, it is anticipated by Wall Street analysts that TD SYNNEX will report a total revenue of $15.09 billion, which reflects an increase of 2.8% from the same quarter in the previous year. The revenue contributions are expected to be 31.3% from Europe ($4.72 billion) and 7.3% from Asia-Pacific and Japan ($1.11 billion).

For the entire year, the company's total revenue is forecasted to be $60.54 billion, which is an improvement of 3.6% from the previous year. The revenue contributions from different regions are expected as follows: Europe will contribute 33.2% ($20.12 billion) and Asia-Pacific and Japan 7.2% ($4.34 billion) to the total revenue.

Concluding Remarks

The dependency of TD SYNNEX on global markets for its revenues presents a mix of potential gains and hazards. Thus, monitoring the trends in its overseas revenues can be a key indicator for predicting the firm's future performance.

With the increasing intricacies of global interdependence and geopolitical strife, Wall Street analysts meticulously observe these patterns, especially for companies with an international footprint, to tweak their forecasts of earnings. Importantly, several additional factors, such as a company's domestic market status, also impact these earnings forecasts.

We at Zacks strongly focus on the dynamic earnings forecast of companies, given that empirical studies have demonstrated its potent impact on the immediate price movement of stocks. Invariably, there's a positive relationship -- upward earnings predictions often result in an increase in stock prices.

Boasting a remarkable track record that's been externally verified, the Zacks Rank, our unique stock rating system, leverages changes in earnings projections to function as a reliable gauge for predicting short-term stock price movements.

Currently, TD SYNNEX holds a Zacks Rank #3 (Hold), signifying its potential to match the overall market's performance in the forthcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

TD SYNNEX's Recent Stock Market Performance

Over the preceding four weeks, the stock's value has appreciated by 11.1%, against an upturn of 4.3% in the Zacks S&P 500 composite. In parallel, the Zacks Computer and Technology sector, which counts TD SYNNEX among its entities, has appreciated by 7.6%. Over the past three months, the company's shares have seen an increase of 40.7% versus the S&P 500's 8.7% increase. The sector overall has witnessed an increase of 16.8% over the same period.

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